Barclays has become the largest UK lender to reduce mortgage rates, offering fixed-term deals as low as 3.99% amidst growing economic uncertainty caused by US trade tariffs. Starting Friday, the bank will offer two- and five-year fixed-rate mortgages at below 4%, available to borrowers with a 60% loan-to-value ratio and an £899 fee.
The move follows speculation that the Bank of England may implement multiple interest rate cuts this year to counteract a potential economic slowdown. US President Donald Trump’s aggressive tariff policies have sparked fears of a global trade slump, with analysts now predicting up to four rate cuts by year-end, down from earlier expectations of two.
Barclays joins other lenders—including Coventry Building Society, TSB, and Bank of Ireland—in cutting rates this week. According to Moneyfacts, average mortgage rates have dipped slightly, with two-year fixed rates falling from 5.3% to 5.29% and five-year fixed rates dropping from 5.15% to 5.14%.
While experts welcome Barclays’ reductions as a boost for buyers, concerns remain about limited options for remortgage customers. Andrew Montlake of Coreco warned that “rate cuts are on the cards,” but mortgage rates may not fall as much as predicted. Hannah Bashford of Model Financial Solutions noted that lenders are focusing on purchases rather than refinancing.
Barclays’ rate cuts reflect efforts to keep the housing market buoyant amidst volatile conditions—a positive step for buyers navigating an uncertain economic landscape.
