The decline in tensions in the Middle East is due to the change in expectations leading to these much-needed reductions in mortgage rates.
Coventry Building Society is the other lender to announce mortgage reductions across its range.
According to Newspage, Barclays cut interest rates across the board by up to 0.43%. The buy-in mortgage is highlighted at 5.85%, a three-year fixed rate for those borrowing at 95% loan-to-value (LTV) and reduces to 5.42%. It comes with a fee of £899.
Meanwhile, the agency revealed that NatWest has cut its rates by up to 0.54%. The highlight will be a two-year tracker rate remortgage of 80% LTV with a £995 charge reduced to 4.42%.
It comes after Santander cut interest rates by up to 0.23% last week, and Gen H cut mortgage interest rates by up to 0.3% earlier this week.
But it also comes after NatWest increased some of its rates last week, showing just how erratic mortgage pricing currently is.
As such, mortgage brokers advise borrowers looking for a deal to act quickly because things may change very quickly.
Justin Moy, General Manager at Chelmsford-based EHF MortgagesSwap rates — which drive lenders’ rates — have fallen and that is now feeding into mortgage rates, he told Newspage.
He added: “Some significant cuts from a number of major lenders, with swap rates improving and the possibility of a base interest rate increase in 2026 declining.”
“But it is very important that borrowers act ‘quickly’ just in case interest rates could increase without notice, as we have seen many times this year.”
Katie Eatenton, Mortgage and Protection Specialist at St Albans-based Eatonton FinancialEcho this advice.
“Great news to ramp up what tends to be a quiet time or year and move in a positive direction,” she said. “The downward trend in rates should give comfort to those coming out of very low interest rates this summer.”
“I would still encourage those hoping to move or remortgage this year to lock in the rate early, just in case things change.”
