Barclays has announced a series of rate reductions across its residential mortgage range, introducing multiple new sub-4% products, including a standout two-year fixed rate at 3.72%, one of the most competitive deals currently available from a high street lender. The changes, happening on Tuesday the 7th of October 2025, come as lenders continue to fine-tune pricing ahead of the autumn property market and the government’s upcoming November Budget announcement. An announcement that is expected to shake things up a bit in the mortgage world!
Barclays’ New Mortgage Rates at a Glance
The headline change is the Barclays Premier two-year fixed rate at 3.72%, available up to 60% loan-to-value (LTV) with a £899 product fee, down from 3.85% previously.
Other key highlights include:
- Standard two-year fixed rate (60% LTV): 3.73% with £899 fee
- Fee-free two-year fixed rate (60% LTV): 3.93%
- Premier five-year fixed rate (60% LTV): 3.97%
- Standard five-year fixed rate (60% LTV): 3.98% with £899 fee
- Fee-free five-year fixed rate: reduced from 4.19% to 4.09%
For borrowers with smaller deposits, Barclays has also cut rates at 95% LTV, with a two-year fixed deal now at 4.82% and a five-year fixed at 4.79%, both fee-free, welcome news for first-time buyers.
In addition, the bank’s Green Home mortgage range has seen reductions, including:
- Two-year fixed (fee-free, 60% LTV): 3.83%
- Five-year fixed (with £899 fee): 3.88%
A Positive Signal for Borrowers?
The move from Barclays marks one of the most competitive sub-4% offerings seen in recent months. As swap rates stabilise and inflationary pressures ease, lenders are regaining confidence in cutting mortgage rates, especially for borrowers with strong equity positions or green properties.
These new rates could provide a welcome boost for both home movers and remortgage customers, many of whom have faced rates above 4% for most of 2024 and 2025.
Louis Mason, Marketing and Communications Director at Oportfolio Mortgages, commented:
“Barclays’ decision to reintroduce sub-4% fixed rates is an encouraging sign for the market. Many homeowners and buyers have been waiting for this psychological threshold to return, it’s a signal of renewed stability and competition among lenders. For clients with larger deposits or existing equity, this could be the perfect opportunity to lock into a deal before the end of the year, especially with the Chancellor’s Budget potentially creating more uncertainty around inflation and interest rate forecasts.”
What This Means for the Mortgage Market
Barclays’ rate reductions come at a time when mortgage pricing remains sensitive to broader economic data. The upcoming November Budget from Chancellor Rachel Reeves is expected to influence the Bank of England’s monetary policy outlook, potentially affecting future swap rate movements.
While inflation has edged lower, it remains above the 2% target, meaning rate volatility is likely to continue. However, Barclays’ decision to move first could pressure other major lenders to follow suit in the coming weeks.
For buyers, particularly those with strong credit profiles or environmentally efficient properties, the new Barclays rates could represent some of the best value currently available.
Barclays’ Commitment to Green and Accessible Lending
The cuts to Barclays’ Green Home mortgage products reinforce the bank’s commitment to sustainable lending. Something that more and more lenders are actively trying to follow. These deals reward borrowers purchasing or remortgaging energy-efficient properties (typically rated A or B on an EPC) with lower interest rates.
As the UK housing market continues to evolve, green mortgages are becoming increasingly attractive, both for their environmental benefits and cost savings.
Should You Lock In Now or Wait?
With the Budget approaching and potential economic turbulence ahead, many borrowers are considering whether now is the right time to secure a new fixed rate.
Mortgage experts generally advise that if a rate fits your affordability and long-term plans, it’s wise to secure it early, as lenders can change pricing rapidly in response to financial data.
At Oportfolio Mortgages, our advisors can help you compare Barclays’ latest offers with other leading lenders, ensuring you choose the most competitive and suitable deal for your circumstances.
Need Help Finding the Best Barclays Mortgage Deal?
If you’re thinking about remortgaging or buying a new property, Oportfolio Mortgages can help you navigate Barclays’ new rates and find a deal that fits your financial goals. Contact our expert team today for tailored advice and a free initial consultation.
