Barclays is the latest big bank to lower mortgage rates before Christmas

by Aaron Strutt

Dec 19 2023

High street lender Barclays will lower its mortgage rates by up to 0.43% across its residential, buy-to-let purchase and remortgage ranges. The price improvements mean Barclays most competitively priced rates are now below 4.40%.

The lender said that it had reviewed its offering against “market funding conditions” and the changes to its mortgage rates will come into effect tomorrow. 

Select Barclays standard, premier, green home, and mortgage guarantee scheme products, which will be lowered within its residential range. An example includes its two-year Great Escape fixed rate at 60% loan to value (LTV) with £0 fee falling from around 5.25% to just over 4.80%.

Five-year fixes set to drop below 4%

Five-year fixed-rate mortgages are set to drop below 4% over the coming weeks as lenders continue to lower their rates.

Banks and building societies typically use “swap rates” to fund their mortgages, which have been falling recently. This should mean the lenders will be able to issue cheaper rates.

Bank of England governor Andrew Bailey has been keen to stress that the base rate will remain high to curb inflation. Thankfully, the money markets are predicting base rate reductions and cheaper mortgages.

Which lenders are offering the lowest rates?

Many of the largest lenders offer the most competitively priced rates, including Nationwide for Intermediaries, NatWest and Santander.

Barclays and Halifax also have some of the most completely priced large mortgage loan rates.

Halifax has a two-year fixed rate of around 4.6% and a five-year rate of just below 4.3%. These mortgages are available to borrowers with a 40% deposit and have £999 arrangement fees.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change

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