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Barclays follows HSBC in lowering mortgage rates post-BoE cut

Published 07/08/2024, 12:35
Updated 07/08/2024, 13:10
© Reuters.  Barclays follows HSBC in lowering mortgage rates post-BoE cut
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Proactive Investors - Barclays PLC (LON:BARC) has cut the rates on several of its main mortgage products, including some below 4%.

From Thursday 8 August, the lender is reducing the rates on a selection of products across its residential purchase, remortgage and 'Reward' ranges.

A five-year fix at 60% loan-to-value has been reduced to 3.84%.

It comes after the Bank of England last week cut the base rate to 5.0%, though economists disagree about how soon this move will be followed by further cuts.

Earlier this week, HSBC (LON:HSBA) announced a number of changes to its residential and buy-to-let mortgage ranges, while Bank of Ireland and specialist TMW also unveiled lower rates many BTL rates.

"It's game on in the mortgage market now," said Stephen Perkins, managing director at mortgage broker Yellow Brick Mortgages in Norwich.

"More lenders going sub-4% is greatly welcomed. The hope now is that these competitive rates will filter up the loan-to-value brackets to help more borrowers."

Riz Malik, director at R3 Mortgages, said the move from Barclays "will help drive confidence among borrowers and in the UK housing market" and "probably won’t be the last" cuts seen on the back of the Bank of England move.

Read more on Proactive Investors UK

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