Barclays has made a “broad range” of cuts to mortgage interest rates, with one broker describing it as a sign that market competition is “heating up”.
The price drop comes a week after Nationwide announced the cuts and also after the Bank of England kept interest rates at 3.75%.
Barclays’ cuts will impact both residential mortgages and buy-to-let mortgages for those remortgaging and buying homes. Most of the cuts relate to fixed rate deals, although some mortgage rates have also been reduced.
Rachel Geddes, director of strategic lender relations at Mortgage Advice Bureau, said this provides further evidence that competition in the mortgage market is intensifying.
She continued: “Although the reductions may seem modest, even small reductions in interest rates can make a tangible difference in monthly payments, affordability, and the ability to borrow at a time when many families are still feeling the impact of rising costs of living.”
“For borrowers who are nearing the end of a fixed rate deal, or those looking to access or move up the property ladder, these latest changes represent an opportunity to re-evaluate their options.
“However, the lowest prime rate is not always the most competitive deal. Product fees, incentives and lender criteria can all have a significant impact on the overall cost of borrowing.”
For anyone looking for a mortgage right now, the best advice is to talk to a broker to find out which products suit your needs. They can also help you find the best price.
With the uncertainty following Keir Starmer’s resignation as Prime Minister this week, fears have been raised that mortgage interest rate cuts may end as markets adjust to the news.
So today’s update from Barclays will be welcome to anyone doing a deal now.
“As lenders continue to adjust rates, they are seeking to achieve this,” Geddes added Mortgage expert advice It has never been more important. An advisor can help borrowers navigate a rapidly changing market, compare available deals, and ensure they get a mortgage that supports their long-term financial goals.
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