Barclays slashes fixed rate deals for home buyers and remortgagers

In the UK mortgage market, lenders such as Barclays, Halifax, Santander, and TSB have made significant adjustments to their fixed-rate mortgage deals in anticipation of a possible cut in the Bank of England Bank Rate. These changes occurred leading up to the anticipated interest rate decision scheduled for August 2025. Barclays specifically has reduced fixed-rate deals for new purchases and remortgaging by up to 0.19 percentage points, appealing to both new and existing customers. Other lenders, including Nationwide and TSB, joined the trend by cutting rates on various products as well, reflecting a shift in the market. Halifax has also been active in this market adjustment, decreasing selected fixed rates for residential purchases and remortgages, with significant cuts like 0.31 percentage points on its two-year remortgage deal. TSB made targeted cuts to its fixed rate offerings for first-time buyers, although it also increased rates for some high LTV (Loan to Value) deals. In addition, Santander reduced rates across its mortgage range, showcasing a general trend among UK lenders to enhance their competitive edge ahead of the Bank of England's rate decision. Market analysts, including David Hollingworth from L&C Mortgages, noted that the current actions among lenders suggest that they are responding to expectations of a rate cut from the Bank of England. Observations have pointed out that lenders appearing to lower rates are likely to compel others to follow suit, thereby creating a competitive landscape aimed at attracting new borrowers. Overall, these adjustments indicate a cautious yet responsive approach by lenders as they navigate the uncertain economic landscape, characterizing a dynamic period in the UK mortgage sector leading up to the Bank of England's anticipated decision.