For existing borrowers, its premier purchase five-year fixed mortgage at 60% loan to value (LTV) with an £899 fee has been lowered from 4.25% to 4.22%. The loan size for this product ranges from £5,000 to £2m. 

Barclays has also made changes to rates for its existing borrowers reward range, such as a two-year fix at 60% LTV with a £999 fee, which has been reduced from 4.75% to 4.67%. The fee-free equivalent has been cut from 4.98% to 4.9%. 

At 75% LTV, the corresponding rates have been cut to 4.75% and 4.96% respectively. Meanwhile, at 85% LTV, the equivalent products now have rates of 5.22% and 5.43% respectively. 

Within the existing borrower reward range, the option for loans over 85% LTV with no fee has been cut by 0.2% to 5.87%. 

Barclays has also reduced five- and 10-year fixed rate options within this offering. 

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Across its BTL mortgages, Barclays has reduced its existing borrower reward two-year fix at 65% LTV from 5.15% to 4.95%. This has a £1,795 fee. 

The fee-free option has been lowered to 5.5%, down from 5.3%. 

At 75% LTV, the equivalent products now have rates of 5% and 5.34% respectively. 

For borrowers wanting a five-year fix, the corresponding options at 65% LTV are priced at 4.34% with a £1,795 fee and 4.58% with no fee. 

For the option over 75% LTV, the rate on the fee-free deal will be cut from 5.75% to 5.55%. 

 

More lenders to cut mortgage rates? 

This is the second time in two weeks that Barclays has reduced its mortgage pricing for existing borrowers, and the lender follows HSBC, Natwest, Santander, TSB and Halifax in lowering rates recently. 

Mark Harris, chief executive of SPF Private Clients, said: ‘With the big five lenders – Barclays, HSBC, Santander, TSB, Halifax and Natwest – reducing their mortgage rates, lenders continue to jostle for business as they ramp up the summer sales. 

“Those lenders who haven’t yet repriced are likely to follow suit, as long as service levels allow.” 

He added: “Even though swap rates, which underpin the pricing of fixed-rate mortgages, are not showing a consistent downwards trend, the need to generate more business seems to be motivating lenders to tweak their rates. 

“It’s good news for borrowers, many of whom are struggling with affordability after successive rate rises and then holds. Expectations of a rate reduction in August are high.” 

According to Chatham Financial, the two-year swap rate was 4.48% on 2 July, down from 4.61% last month. The five-year swap rate fell from 4.05% to 3.98% over the same period.