Barclays Bank has today announced significant reductions to its mortgage rates, offering potential relief to both homebuyers and remortgagers as 2024 comes to an end. The latest changes see Barclays potentially moving closer to the much-anticipated sub-4% mortgage rate mark, a promising development for borrowers moving into 2025.
New Rate Reductions Bring Barclays Closer To Sub-4% Mortgage Products
Among the updated rates, notable adjustments include decreases across key purchase and remortgage products:
Key Purchase Products:
- A 5-year fixed rate at 4.34% with no product fee (60% LTV) will drop to 4.20%, catering to those looking for a fee-free option.
- A 5-year fixed rate at 4.18% with an £899 product fee (60% LTV) will decrease to 4.11%, offering a slightly lower rate for those prepared to pay a modest upfront fee.
- A 5-year fixed rate at 4.27% with an £899 product fee (75% LTV) will reduce to 4.22%, appealing to buyers with smaller deposits.
Key Remortgage Products:
- A 5-year fixed rate at 4.17% with a £999 product fee (60% LTV) will now sit at 4.12%, giving remortgaging homeowners a lower rate option.
- A 5-year fixed rate at 4.30% with a £999 product fee (75% LTV) will decrease to 4.25%, offering more competitive terms for those with higher loan-to-value needs.
- The Great Escape 5-year fixed rate at 4.36% with no product fee (60% LTV, min loan £50k) will fall to 4.26%, a strong option for homeowners seeking to remortgage without the burden of fees.
Moving Closer To Sub-4% Mortgage Rates
The reductions bring Barclays’ rates much closer to the 4% threshold that we are all waiting for, sparking optimism for further decreases in the coming months. This could be especially significant as market analysts, brokers, and borrowers keep a watchful eye on evolving economic conditions and interest rate trends.
A Year Of Mortgage Rate Fluctuations
The mortgage market in 2024 has seen considerable volatility, driven by shifts in the broader economic landscape. While earlier in the year, rates soared following changes in base rates, recent months have shown a welcome reversal, with lenders like Barclays responding to increased stability in the market.
Louis Mason, a mortgage expert at Oportfolio Mortgages, commented on the latest changes:
“These reductions from Barclays are an encouraging sign for both homebuyers and those looking to remortgage. As rates edge closer to the sub-4% mark, borrowers are presented with increasingly competitive options. We’re hopeful that the trend continues into 2025, bringing even more accessible rates to the market.”
At Oportfolio Mortgages, we’re optimistic that this momentum will carry forward, with sub-4% mortgage rates becoming a reality in 2025. As always, we’re here to help you with any mortgage related question that you might have. Give our team a call or drop us a message to arrange a call with one of our mortgage advisors, today.
