Santander previously announced lower rates
Barclays and NatWest announce mortgage rate cuts from TOMORROW(Image: PA)
Both Barclays and NatWest have announced mortgage rate cuts that will kick in from tomorrow.
Barclays has cut its rates across the board by up to 0.43% – with the highlight being its 5.85% purchase three-year fixed rate 95% Loan to Value (LTV), with a fee of £899 and a maximum loan of £570,000, decreasing to 5.42%.
While NatWest has cut its rates by up to 0.54% – with the highlight being its two-year tracker rate remortgage at 80% LTV with a fee of £995 being cut to 4.42%.
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Coventry Building Society (BS) has also announced reductions across its range.
This comes as Santander lowered its rates by up to 0.23% last week while Gen H cut its mortgage rates by up to 0.3% earlier this week.
Experts said the easing of tensions in the Iran war has helped – but they warned that sentiment could change very quickly if it escalates again.
Speaking to Newspage, Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said swap rates have gone down and that was now feeding into mortgage rates.
He added: “Some significant cuts from a number of high street lenders, as swap rates improve and the likelihood of base rate increases in 2026 recedes.
“But it’s so important for borrowers to act ‘quickly’ just in case, as we have seen so many times this year, rates can increase with little notice.”
Jack Tutton, Director at Fareham-based SJ Mortgages, added that there is “growing optimism” among brokers.
He added: “This marks a significant shift in the market, with many lenders reducing some of their rates today. These widespread cuts are set to increase competition in the mortgage market as summer approaches, bringing welcome news for those planning to move in the coming months.
“Borrowing costs have fallen over the past month, leading to the reductions released today, and there is growing optimism that this trend will continue with further rate cuts expected in the near future.”