In a significant boost for homebuyers and those remortgaging, Barclays has announced it will cut interest rates on a selection of its products by up to 0.3%. These reductions come into effect from Tuesday, 18 November 2025.
The bank is not alone in this push, with building societies Skipton and Leeds also announcing their own rate reductions, creating a flurry of activity dubbed 'Monday mayhem' by industry insiders.
Detailed Rate Cuts at Barclays
The changes specifically affect Barclays' Purchase range. Several key products have seen their rates lowered substantially.
A 5-year fixed-rate mortgage at 90% loan-to-value (LTV), previously priced at 4.65% with no product fee, will now be available at 4.35%. For those with a larger deposit or more equity, a 5-year fixed mortgage at 60% LTV has been reduced from 3.98% to 3.82%, though this product carries an £899 fee.
For homeowners looking to switch deals, there is positive news too. A 5-year fixed-rate remortgage at 75% LTV has been cut from 4.21% to an even 4.00%, and this deal also has no product fee.
Expert Analysis: A Strategic Price War?
Financial experts have welcomed the moves, noting they come at a time when underlying market pressures might suggest rate hikes, not cuts.
Harps Garcha, Director at London-based Brooklyns Financial, commented on the surprising timing. "Even though SWAP rates have gone up over the past week, we've seen lenders like Barclays, Skipton and Leeds cutting their mortgage rates, with some fairly chunky reductions for purchases," he said.
Garcha suggested this activity, coinciding with a reported pre-Budget drop in house prices from Rightmove, indicates lenders are gearing up for a price war to stimulate a sluggish market.
Michelle Lawson, Director at Fareham-based Lawson Financial, described the cuts as "juicy" and designed to entice buyers. She stated, "This is a great boost for borrowers and an opportunity to lock something in ahead of the Budget."
Will Borrowers Bite Before the Budget?
While the rate cuts present a clear opportunity, a cloud of uncertainty hangs over the market due to the upcoming government Budget.
Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management in St Albans, believes the lack of market activity has prompted lenders to act. "Lenders are clearly feeling the lack of energy in the market and are doing everything they can to get it moving," she observed.
However, she noted a prevailing sense of caution among potential buyers, adding, "Many people are clearly sitting tight ahead of what is shaping up to be a grim Budget."
The central question remains whether these attractive new rates will be enough to convince buyers to act now or if they will choose to wait and see what fiscal announcements are made.
