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Writer's pictureProper Property RE Team

Barclays ‘blows the doors off’ with a 5-year fix at 4.39%.

Barclays made a significant impact by unveiling a 5-year fixed-rate mortgage at 4.39%, causing a stir in the ongoing rate competition.


Alongside TSB and Accord, they announced rate reductions, with Barclays leading the charge. Their offerings include a 5-year fixed rate for purchases at 60% LTV for 4.39% with an £899 product fee and another at 90% LTV for 4.95% with a £999 product fee.


Brokers unanimously praised these cuts. Stephen Perkins from Yellow Brick Mortgages in Norwich remarked that Barclays’ rates were impressive, signaling a strong message to other lenders. He highlighted the significance of rates dropping below 5% for 90% loan-to-value, which could rejuvenate the market.


Justin Moy of EHF Mortgages in Chelmsford also expressed enthusiasm, noting the lenders’ push for purchase deals and Barclays’ competitive pricing reminiscent of earlier rates in the year. He joked about the possibility of the base rate being "higher for longer" turning into a Christmas Cracker joke due to ongoing fixed rate cuts.


Riz Malik of R3 Mortgages in Southend-on-Sea observed that lenders prioritize winning business over margins in the current competitive landscape. Ranald Mitchell of Charwin Private Clients in Norwich echoed this sentiment, emphasizing the intensifying competition among lenders and the potential benefit for those nearing the end of their current deals in 2024.


Mitchell also predicted that focusing on higher loan-to-value products could revive the first-time buyer and home mover sectors while potentially reinvigorating the buy-to-let market. Gareth Davies of South Coast Mortgage Services in Southampton shared the optimism, highlighting the continued rate reductions and the industry's recovery from the earlier summer panic.



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