Barclays has slashed its mortgage rates for the second time in four days, with rates now coming under 5% for mortgages with a 10% deposit.
The banking giant announced a swathe of cuts to its products today, as a global bond buying spree has sent gilt yields, used to price mortgages, down.
The new rates include a 4.38% deal for those able to stump up the deposit for a 60% LTV mortgage. But even lower-deposit mortgages are much cheaper, as the five-year fix with a 90% LTV has been cut to 4.95%.
It comes just days after Barclays’ last round of cuts. While many of the changes today deal with products that were not changed on Monday, some have been cut further. In the space of a week, a two-year fix with a £0 product fee and a 90% LTV has fallen from 6.02% to 5.39%.
Riz Malik, founder of broker R3 mortgages, said: “No one wants to be left behind in a final push for business for 2023. Considering how much some of these rates have dropped, it might be the case that lenders are prioritising applications over margin.”
Other lenders to announce cuts today include TSB and Accord.
Justin Moy, managing director at Essex-based broker, EHF Mortgages, said: “More Christmas cheer from mortgage lenders who are all looking to start 2024 on the front foot.
“It's interesting that the headline deals are still for purchases rather than remortgage cases, in an attempt to keep the housing market moving. Barclays are also pricing close to their best rates seen earlier in the year. The message about the base rate being 'higher for longer' might end up being the joke in a Christmas Cracker if these fixed rate cuts keep coming.”
According to Moneyfacts, the average interest rate for a two-year fixed mortgage is 6.05%. For a five-year deal it is 5.66%. Both figures are down by more than 0.7 percentage points from their peak over the summer
