Barclays mortgage rates: major UK bank cuts mortgage rates as other lenders hike them - deals starting at 4.3%

• Barclays is cutting some mortgage rates by up to 0.20 percentage points from 27 November
• A remortgage deal at 4.3% is now available, down from 4.5%, for borrowers with 25% equity
• The bank acted in response to ‘volatile’ swap markets, which influence mortgage pricing
• The move follows a trend of recent rate increases by major lenders

A major bank is lowering some of its mortgage rates from today (27 November), after a series of rate hikes by other lenders.

Barclays has announced it will reduce rates by up to 0.20 percentage points on selected residential purchase and remortgage products.

The bank explained that the decision was made in response to a "volatile" period in the swap markets, which lenders use to determine mortgage pricing.

Mark Arnold, head of mortgage and savings at Barclays said: “I’m delighted we’re able to decrease core mortgage rates again, after what has been a very volatile period in the swap markets.

“As we have done during the course of this year, when we see an opportunity in the swap markets we will act swiftly to pass on the benefit to our mortgage customers.”

Starting from Wednesday 27 November, a remortgage deal is available at 4.3%, down from the current rate of 4.5%. This product is designed for borrowers with 25% equity and carries a £999 fee.

Recently, major lenders have raised various mortgage rates, attributing the increases to the current swap rate environment.

The Bank of England recently lowered the base interest rate to 4.75%, a quarter-point reduction, marking the second rate cut this year.

But financial experts predict that further rate reductions will occur more slowly than previously anticipated, given the broader economic conditions.

Nicholas Mendes​​​​, mortgage technical manager at broker John Charcol said: “Barclays has made a bold move as the first high street lender to cut mortgage rates in response to recent market changes.

“With swap rates easing over the past couple of days, it’s great to see a lender acting quickly to reflect the slightly improving conditions.

“Some standout reductions include the two-year fixed at 90% loan-to-value (LTV) with no product fee, dropping from 5.49% to 5.39%.”

He added: “While these reductions won’t change the world, they do offer a bit of breathing room for borrowers, especially after the recent trend of rising rates among high street lenders.”

What do you think about Barclays’ decision to lower mortgage rates? Will this move provide meaningful relief for borrowers, or do you think more needs to be done? Share your thoughts and experiences in the comments secton.