Skipton Building Society has also given customers and update
Customers of Barclays have been given good news in a new update. More mortgage lenders have announced rate cuts after a slew of reductions last week.
Barclays said it was cutting rates across more than 20 mortgage products from Wednesday. The reductions include a two-year fixed-rate home buyer mortgage being reduced from 4.95% to 4.60%, for people with a 40% deposit. The product has a £899 fee.
A five-year fixed-rate home buyer mortgage for people with a 20% deposit will decrease from 5.11% to 4.96%. The deal has no product fee.
Skipton Building Society will also reduce mortgage rates from Wednesday, as well as launching some new products. Several lenders, including HSBC UK, Halifax Intermediaries, Santander and TSB made reductions last week amid the easing environment for swap rates, which are used by lenders to price mortgages.
The conflict in the Middle East prompted market volatility and uncertainty about the future of interest rates. Financial information website Moneyfacts said average two and five-year homeowner mortgage rates on Tuesday morning were unchanged from Monday.
But while some average rates appear to have reached a plateau in recent days, they have increased significantly in recent weeks. The average two-year fixed-rate homeowner mortgage was 4.83% at the start of March and 5.87% on 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. We’ll continue to monitor developments closely and respond responsibly where we can.”
