Barclays and NatWest have announced mortgage rate cuts that will take effect from tomorrow, bringing relief to borrowers. Barclays has reduced its rates across the board by up to 0.43%, with a notable reduction on its 5.85% purchase three-year fixed rate at 95% Loan to Value (LTV), which now drops to 5.42%. This product carries a fee of £899 and a maximum loan of £570,000.
NatWest and Other Lenders Follow Suit
NatWest has cut its rates by up to 0.54%, with a highlight being its two-year tracker rate remortgage at 80% LTV, reduced to 4.42% with a £995 fee. Coventry Building Society has also announced reductions across its range. This follows Santander’s rate cuts of up to 0.23% last week and Gen H’s reductions of up to 0.3% earlier this week.
Market Optimism and Expert Insights
Experts attribute the cuts to easing tensions in the Iran war, which has lowered swap rates. However, they caution that sentiment could shift quickly if geopolitical tensions escalate. Justin Moy, Managing Director at EHF Mortgages, noted that swap rates have fallen, feeding into mortgage rates. He urged borrowers to act swiftly, as rates can increase with little notice. Jack Tutton, Director at SJ Mortgages, expressed growing optimism among brokers, expecting further rate cuts as summer approaches.
