Barclays Mortgage Rates Drop Below 4% Amid Price War

Barclays has become the latest high street lender to slash its mortgage rates, now offering fixed rates below 4 percent. The bank’s move marks a significant shift in the lending landscape following President Trump’s tariff announcement, which sent markets into turmoil.

Currently, Barclays is offering competitive two-year and five-year fixed rates at 3.99 percent for borrowers with a 40 percent deposit. This reduction joins similar cuts made by other institutions such as Coventry Building Society, which has introduced a two-year fixed rate at 3.89 percent for buyers with a 35 percent deposit.

The ongoing price war among banks and building societies is expected to escalate as more lenders strive to capture borrower interest. This comes as a welcome relief for the 1.34 million homeowners set to exit existing mortgage deals in the latter half of this year.

In light of recent developments, swap rates—used by banks to set the pricing on fixed-rate mortgages—have fallen sharply. Mortgage brokers anticipate that this trend will continue, leading to more lenders offering rates below 4 percent in the near future.

David Hollingworth, a broker at L&C, remarked on the positive nature of the latest cuts from Coventry Building Society. The expectation is that the biggest players in the mortgage market will bolster rate reductions, providing even more options for borrowers seeking competitive deals.

As borrowers approach the end of fixed mortgage terms, they can begin securing new deals up to six months in advance. With the current volatility in the market, those looking to switch may find opportunities to save on their mortgage rates.