Barclays customers have received welcome news in a fresh update, as more mortgage lenders have announced rate cuts following a wave of reductions last week.
Barclays confirmed it was slashing rates across more than 20 mortgage products from Wednesday. The reductions include a two-year fixed-rate home buyer mortgage being cut from 4.95% to 4.60%, for those with a 40% deposit. The product carries a £899 fee.
A five-year fixed-rate home buyer mortgage for those with a 20% deposit will drop from 5.11% to 4.96%. The deal comes with no product fee.
Skipton Building Society will also trim mortgage rates from Wednesday, alongside launching several new products. A number of lenders, including HSBC UK, Halifax Intermediaries, Santander and TSB, made reductions last week amid an easing environment for swap rates, which lenders use to price mortgages.
Ongoing conflict in the Middle East has prompted market volatility and uncertainty surrounding the future direction of interest rates. Financial information website Moneyfacts reported that average two and five-year homeowner mortgage rates on Tuesday morning remained unchanged from Monday.
However, while some average rates appear to have levelled off in recent days, they have risen considerably over recent weeks. The average two-year fixed-rate homeowner mortgage stood at 4.83% at the start of March, climbing to 5.87% by Tuesday morning.
The average five-year fixed-rate homeowner mortgage has increased from 4.95% at the start of March to 5.76% on Tuesday morning, according to Moneyfacts.
Jen Lloyd, head of mortgage products and propositions at Skipton, said: “Following the reductions we made earlier this month, we’re pleased to be able to cut rates further.
“While falling rates offer encouraging signs for the market, a degree of caution remains important. Conditions continue to be volatile amid ongoing global conflicts and broader economic uncertainty, and it’s too early to say whether this marks a sustained downward trend. Against this backdrop, recent easing in swap rates has enabled us to pass on additional savings through our mortgage pricing.
“This is a welcome development for existing homeowners and prospective buyers alike, providing some much‐needed relief and a potential boost for home buyers at a time when affordability remains under pressure. We’ll continue to monitor developments closely and respond responsibly where we can.”