Barclays cuts mortgage rates for second time in two days

Barclays has announced a second round of mortgage rate reductions in as many days, bringing a number of products below the 4% mark in a clear signal of renewed lender competition in the residential mortgage market.

Effective from Friday 11 July, the latest cuts follow a broad wave of reductions made on Wednesday across more than 40 products. Among the standout changes is the launch of what the bank describes as the joint-lowest two-year fixed rate for remortgages currently available on the market — a 3.83% deal at 60% loan-to-value, with a £999 product fee, available through Barclays’ Existing Mortgage Customer (EMC) Reward range.

The new rates apply across Barclays’ residential product suite, including options for both remortgage and purchase business, and span its Premier, Great Escape and EMC Reward offerings.

Notable changes include a drop from 3.90% to 3.83% on the Premier 2 Year Fixed for remortgages at 60% LTV, and a reduction from 4.14% to 3.99% on the equivalent 2 Year Fixed at 75% LTV.

Barclays’ fee-free Great Escape products also see meaningful movement, with the 2 Year Fixed at 75% LTV cut from 4.54% to 4.40%.

Five-year fixed rates have also been lowered, with the Premier 5 Year Fixed at 60% LTV decreasing from 3.92% to 3.85%, and the fee-free Great Escape 5 Year Fixed at 60% LTV moving from 4.09% to 4.00%. The corresponding Great Escape product at 75% LTV drops to 4.13%.

The lender is also trimming rates on high-value loans. A two-year fixed product for loans between £2m and £10m at 60% LTV sees a marginal decrease from 3.91% to 3.89%, while the equivalent deal at 70% LTV drops to 3.97%.

The EMC Reward range, aimed at existing Barclays mortgage customers, is also seeing substantial reductions. The 2 Year Fixed at 60% LTV drops from 3.90% to 3.83%, mirroring the rate on the new ‘market-leading’ remortgage product. The 75% LTV equivalent falls to 3.99%.

Reductions on five-year fixes in this category include the £0 fee 60% LTV product, which now stands at 4.00%, and the £999 fee option at the same LTV, which falls to 3.86%.