Barclays has made a ‘wide range’ of cuts to its mortgage rates, with one broker describing it as a sign competition in the market was ‘heating up’.
The price decreases come a week after Nationwide announced reductions and also after the Bank of England held interest rates at 3.75%.
Barclays cuts will affect both residential and buy-to-let mortgages for those remortgaging and purchasing homes. Most of the cuts are to fixed-rate deals, although some tracker mortgage rates have also been reduced.
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said this offered further signs that competition in the mortgage market was heating up.
“While reductions may seem modest,” she continued, “even small rate cuts can make a meaningful difference to monthly repayments, affordability, and borrowing power at a time when many households are still feeling the impact of higher living costs.
“For borrowers coming to the end of a fixed-rate deal, or those looking to get onto or move up the property ladder, these latest changes present an opportunity to reassess their options.
“However, the lowest headline rate isn’t 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 at the present time, the best advice is to speak to a broker to find out which products suit your needs. They can also help you find the best rate.
With uncertainty following the resignation of Keir Starmer as Prime Minister this week there were raised concerns mortgage rate cuts might end as the markets adjusted to the news.
So today’s update from Barclays will be welcome to anyone taking out a deal right now.
Geddes added: “As lenders continue to adjust pricing, seeking expert mortgage advice has never been more important. An adviser can help borrowers navigate a rapidly changing market, compare available deals, and ensure they secure a mortgage that supports their longer-term financial goals.”