- Barclays will cut fixed interest rates for home buyers from tomorrow
- The five-year fix for buyers charges an interest rate of 4.39% and is market leading
- It follows similar rate cuts by Nationwide, NatWest and Virgin Money
Barclays is unleashing a new wave of mortgage rate cuts as competition between lenders increases.
From tomorrow, the bank will cut some interest rates on its two- and five-year fixed products aimed at homebuyers, including the launch of a new best buy.
Barclays’ move comes in the wake of a wave of rate cuts over the past week, which saw lenders adjust their prices daily.
Top of the table: Barclays now offers a fixed rate of 4.39% over five years, aimed at those buying with at least a 40% deposit. There is a product fee of £899
Firstly, Nationwide Building Society broke the 4.5 per cent barrier after cutting its fixed rates by up to 0.43 percentage points.
Then on Tuesday, NatWest cut selected fixed interest rates by up to 0.4 percentage points on residential deals, with the best five-year fixed rate falling to 4.47 percent.
The next day, Santander confirmed a wave of mortgage cuts.
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This was followed today by Virgin Money, which announced a temporary deal with a five-year fix of just 4.42 percent.
TSB has also announced interest rate cuts of up to 0.45 percentage points and Accord Mortgages has announced interest rate cuts of up to 0.3 percentage points.
However, Barclays has now surpassed them all with a five-year fixed rate of 4.39 per cent, aimed at those buying with at least a 40 per cent deposit. There is a product fee of £899.
Someone buying a property worth $350,000 with a $200,000 mortgage, payable over 25 years, would have to pay $1,099 monthly at that rate.
New deals from Barclays also include a five-year fix at 4.7 per cent, aimed at those buying with at least a 25 per cent deposit.
For those buying with a 10 per cent deposit, Barclays is now offering a rate of 4.95 per cent, with a £999 fee.
Nicholas Mendes of mortgage broker John Charcol expects further interest rate cuts to follow.
He said: ‘Nationally we topped the best buys list at the start of the week, but were subtly outflanked by Virgin’s exclusive five-year buying fix at 4.42 per cent.
‘Barclays’ latest repricing takes it comfortably to the top of the best buys heading into the weekend.
I expect we will see another rate review from the lender before the weekend or early next week to kick off the holiday season.”
A statement from Barclays said: ‘The market is moving at a rapid pace and we are committed to remaining flexible with our pricing to ensure we can continue to offer you our most competitive offering.’