Oct 28, 2024, 4:18 PM
Oct 28, 2024, 12:00 AM

Barclays Cuts Fixed Mortgage Rates After Recent Hikes

Provocative
Highlights
  • Barclays will introduce new mortgage rates on October 29, 2024, cutting select fixed-rate deals by up to 0.34 percentage points.
  • This decision comes in a context of market volatility and recent rate hikes from several leading lenders like HSBC and NatWest.
  • Brokers are optimistic that these changes may signal potential relief for borrowers amid expectations of a Bank of England interest rate cut.
Story

In the UK, Barclays is adjusting its mortgage rates, effective October 29, to align with recent market changes and expectations of a potential cut to the Bank of England's interest rates. Following significant market volatility, major lenders like HSBC, Halifax, Santander, and NatWest have recently increased their rates amidst rising borrower uncertainty. As part of its strategy, Barclays is reducing its fixed-rate deals by up to 0.34 percentage points and enhancing options for borrowers. The lowered rates include a two-year fixed mortgage for purchases at 4.4% for those with a 15% deposit and a five-year fixed option now at 3.71%. These changes are perceived positively by brokers, suggesting borrowers may benefit soon due to anticipated lower interest rates from the Bank of England. The mortgage market is adjusting quickly, with various lenders making changes to remain competitive. Barclays’ new offers illustrate an attempt to attract more customers in a challenging economic landscape, providing options that may alleviate some borrower pressure during uncertain times.

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