Barclays Bank has announced a new wave of mortgage rate reductions, with some products falling below 4% for the first time in months. As of the 4th of March 2025, the bank has lowered rates across a range of mortgage products, including its Green Home five-year fixed-rate mortgage, which now stands at 3.96%. Previously priced at 3.99%, this rate is available for borrowers with a 60% loan-to-value (LTV) ratio and carries a product fee of £899. In this article I will run through the new low Barclays Mortgage Rates
Low Barclays Mortgage Rates On Green Homeownership
Barclays’ Green Home mortgages are designed specifically for borrowers purchasing energy-efficient new-build homes directly from the builder or developer. Eligible properties must have an energy efficiency rating of 81 or above or fall within energy efficiency bands A or B. This initiative is part of Barclays’ broader effort to promote sustainable housing and support buyers looking to reduce their carbon footprint. The reduction in the Green Home mortgage rate further solidifies Barclays’ position as a competitive lender in the UK mortgage market. Lower rates not only make homeownership more affordable but also provide an incentive for buyers to consider energy-efficient homes, aligning with the UK government’s push for greener housing.
Significant Reductions Across Multiple Products
In addition to the Green Home mortgage rate cut, Barclays has introduced reductions of up to 0.48% on other products. Notably, the lender’s two-year fixed mortgage at 90% LTV, which previously carried a higher rate, is now priced at 4.93%. This product is particularly appealing to first-time buyers who may have smaller deposits, offering a more accessible route onto the property ladder.
Higher Loan Caps for 90% LTV Mortgages
Alongside the rate reductions, Barclays has increased the maximum loan amounts for 90% LTV purchases. The new caps are as follows:
- For houses: Increased from £570,000 to £640,000
- For flats: Increased from £275,000 to £310,000
This move will allow borrowers to access larger loans with a 10% deposit, reflecting Barclays’ commitment to supporting homebuyers amid rising property prices.
Expert Industry Reaction
Mortgage experts have welcomed Barclays’ decision, highlighting its positive impact on affordability and accessibility for homebuyers.
Louis Mason, Marketing and Communications Director at Oportfolio Mortgages, commented: “Barclays’ decision to lower their mortgage rates and enhance loan caps demonstrates a strong commitment to supporting homebuyers, especially those investing in energy-efficient properties. This move not only makes homeownership more accessible but also encourages sustainable living.”
Industry analysts believe Barclays’ latest adjustments are part of a broader trend among lenders seeking to remain competitive in an evolving market. With inflation cooling and interest rates stabilising, banks are under increasing pressure to offer attractive mortgage deals to retain and attract borrowers.
A Positive Outlook for Borrowers
For prospective homebuyers and those looking to remortgage, Barclays’ new rates offer an opportunity to secure a more affordable deal. The sub-4% Green Home mortgage, in particular, is an encouraging sign that lenders are beginning to pass on savings to consumers.
As the UK housing market continues to evolve, mortgage rate reductions such as these provide a welcome boost for buyers, particularly in the new-build sector. Barclays’ commitment to energy efficiency and affordability could pave the way for further innovations in the mortgage space, benefiting borrowers in the long run.
Speak To A Mortgage Professional
With competition among lenders intensifying, Barclays’ latest rate reductions position it as a key player in the UK mortgage market. Whether you’re a first-time buyer, a homeowner looking to remortgage, or someone considering a sustainable home, these new mortgage rates offer a valuable opportunity to secure a competitive deal. As the market continues to shift, keeping an eye on rate changes and lender incentives will be crucial for anyone looking to make a move in 2025. The best way to do this is by partnering with an experienced whole of market mortgage brokerage like Oportfolio Mortgages. Call or message our team today to see how we can help.
