Barclays is stepping up its focus on the UK mortgage market as part of a wider strategic shift back towards domestic retail banking with affordability, first-time buyers and broker support at the centre of its growth plans.

Jatin Patel (main picture), co-head of retail banking at Barclays UK, said mortgages are now a “massive priority” for the group, reflecting a re-pivot towards its home market following several years of global expansion.

Speaking about the bank’s strategy at a media breakfast briefing in Canary Wharf yesterday, Patel said Barclays’ aim was not simply to grow lending volumes but to make home ownership more accessible while supporting customers throughout their financial lives.

MAJOR LIFE MOMENT

“Buying a home is one of the most financially important decisions a customer can make, but it’s also a major life moment,” he said.

“We want to support customers not just at the point of purchase, but over the long term, building financial confidence as well as affordability.”

Patel said affordability pressures had intensified, particularly for first-time buyers, with Barclays data showing the average age of a homebuyer rising from 31 to 34 in recent years. Difficulty saving for a deposit remains the single biggest barrier to ownership, he added.

PRICE AND INNOVATION

In response, Barclays has focused heavily on pricing and product innovation. Patel said the bank was one of the first major lenders to re-enter sub-4% mortgage rates after the post-mini-Budget peak and made 24 separate pricing reductions during 2025 – effectively cutting rates every two weeks.

However, he stressed that rates alone were not enough. Barclays has expanded high loan-to-value lending, increasing the maximum purchase price to £640,000 for houses and £310,000 for flats above 85% LTV, and adjusted affordability stress testing to allow the average family to borrow around £31,000 more.

The bank has also targeted deposit constraints through schemes including zero-deposit Right to Buy mortgages and products designed to reflect the growing role of family support.

SUPPORTING AFFORDABILITY

Its Mortgage Boost product allows friends or relatives to support affordability using income rather than cash, while other products enable direct family assistance with deposits.

Family support is becoming increasingly common, Patel said, not just for first-time buyers but also for second purchases.

The strategy has underpinned a recovery in lending volumes. Up to the end of the third quarter, Barclays recorded five consecutive quarters of mortgage balance sheet growth and completed £25bn of UK mortgage lending.

“There is a real commitment from the very top of the group to continue this momentum.”

March saw 14,000 completions – the strongest monthly performance in four to five years – driven in part by stamp duty changes.

Around 23% to 24% of lending was in the high LTV space, highlighting what Patel described as “really strong support” for buyers with smaller deposits.

“There is a real commitment from the very top of the group to continue this momentum,” he said. “We have massive plans for mortgages this year and want to work closely with brokers to support home buyers and homeowners across the UK.”