More mortgage lenders have announced further rate cuts, following a series of reductions last week.
Barclays is cutting rates across over 20 mortgage products from Wednesday. This includes a two-year fixed-rate home buyer mortgage for those with a 40% deposit, reduced from 4.95% to 4.60% (£899 fee). A five-year fixed-rate option for buyers with a 20% deposit will decrease from 5.11% to 4.96% (no product fee). Skipton Building Society will also reduce mortgage rates from Wednesday, alongside launching new products.
These moves follow similar reductions last week by HSBC UK, Halifax Intermediaries, Santander, and TSB, driven by easing swap rates, which lenders use to price mortgages. The Middle East conflict previously caused market volatility and uncertainty about interest rates.
Financial information website Moneyfacts noted average two and five-year homeowner mortgage rates were unchanged from Monday to Tuesday. Despite a recent plateau, rates have increased significantly in recent weeks. The average two-year fixed-rate homeowner mortgage was 4.83% at the start of March, rising to 5.87% by Tuesday morning.
The average five-year fixed-rate homeowner mortgage has risen 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.
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“We’ll continue to monitor developments closely and respond responsibly where we can.”