Barclays is slashing some mortgage rates below 4% from Friday, as the average fixed-rates on offer fall more widely.
The bank has said that from Friday, it will offer a two-year fixed-rate mortgage at 3.99%, decreasing from 4.11%. The deal is available to home buyers with a 40% deposit and has a fee of £899.
A five-year fixed-rate at 3.99% will also be available from Friday to borrowers with a 40% deposit, with a fee of £899. The rate will be reduced from 4.12%.
There will also be some mortgage rate reductions for Barclays Premier customers.
A two-year fixed-rate Barclays Premier mortgage will be reduced from 4.10% to 3.98% for home buyers with a 40% deposit. The deal also has a fee of £899.
A five-year Premier mortgage rate will reduce from 4.11% to 3.98%. The deal has a £899 product fee and is available to home buyers with a 40% deposit.
A three-year Premier deal at 4.32% will reduce to 3.99%, for borrowers with a 40% deposit, with a £999 fee.
To join Barclays Premier, people need to open a Premier current account, with eligibility for the account including paying in a gross annual income of at least £75,000, or having a total balance of at least £100,000 in savings with Barclays, in Barclays UK investments, or in a mix of both.
Global economic volatility following US President Donald Trump’s unveiling of tariffs has boosted analysts’ expectations that the Bank of England will respond with interest rate cuts.
Hina Bhudia, a partner at Knight Frank Finance, said: “Even with the president’s 90-day reprieve, risks to the growth outlook have clearly risen in the past four weeks. Swap rates (which are used by lenders to price mortgages) have come down during that period to reflect the possibility that the Bank of England cuts rates at least two times, and very likely three times before the year is out.”
Ian Futcher, a financial planner at wealth manager Quilter, said: “As swap rates have dropped, some lenders have moved to cut mortgage rates, with more likely to follow if market conditions persist.
“Homeowners with variable or tracker deals could benefit further should the Bank of England act.”
According to financial information website Moneyfacts, the average two-year fixed-rate homeowner mortgage rate on the market on Thursday morning was 5.29%, down from 5.30% on Wednesday.
The average five-year fixed homeowner mortgage rate on the market on Thursday morning was 5.14%, down from 5.15% on Wednesday.
Earlier this week, Coventry Building Society’s broker arm, Coventry for Intermediaries, launched a two-year fixed-rate mortgage at 3.89% for borrowers with a 35% deposit, with a £999 fee.
