Barclays has made further rate cuts to its mortgage products, affecting deals for existing borrowers.
This includes residential purchase-only mortgages, such as the two-year fix at 85% loan to value (LTV) with an £899 fee, which has dropped from 4.23% to 4.14%.
There is also a fee-free five-year fix at 60% LTV, which has been cut from 4.2% to 4.09%.
Further, the five-year fix at 75% LTV with an £899 fee has been reduced from 4.2% to 4.12%, while the fee-free option has been cut from 4.3% to 4.25%.
Changes have also been made to Barclays’ two- and five-year fixed green mortgages.
Regarding its remortgage-only offering, Barclays has cut the rate of the three-year fix at 60% LTV with a £999 fee from 3.98% to 3.95%, while the equivalent product at 75% LTV has gone down to 4.1%, previously 4.13%.
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Elsewhere, the five-year fix at 60% LTV with a £999 fee has been lowered from 4.03% to 3.93%, and the five-year fixed premier product at the same tier has been cut from 4.02% to 3.92%.
The two- and five-year fixed Great Escape fee-free remortgages at 60% LTV have gone down from 4.33% to 4.15% and from 4.2% to 4.09% respectively.
Barclays has also made reductions to its existing customer reward range, applying to deals at 85% LTV and higher.
The changes take effect from 1 July.
HSBC cuts mortgage rates
HSBC has also announced rate cuts, which will go live on 1 July across residential and buy-to-let (BTL) mortgages.
This will apply to existing residential switching and borrowing more products, first-time buyer and homemover deals, and mortgages for homes rated with an Energy Performance Certificate (EPC) A or B.
HSBC has also cut remortgage rates, both with and without cashback, and remortgage rates for energy-efficient homes.
Further, BTL purchase, remortgage and switching or borrowing more rates have been lowered.
Reductions have also been made to two-year international residential and international BTL mortgage rates.
TSB reduces pricing
TSB has announced mortgage rate reductions that will come in on 1 July, with rate cuts of up to 0.2%.
This will include two-, three- and five-year fixed product transfer rates for residential borrowers, as well as two- and five-year fixed BTL product transfer rates up to 75% LTV.
Similar cuts will be made to additional borrowing products for residential and BTL borrowers.
Today, Principality Building Society also announced mortgage rate cuts for the start of next month.
Swap rates push mortgage rates down
Nick Mendes, mortgage technical manager at John Charcol, said: “Monday has kicked off with a flurry of rate reductions among lenders as they battle it out ahead of the summer holidays. The direction of travel over the past month has been fairly clear. Swap rates, which heavily influence fixed rate mortgage pricing, have continued to fall quite noticeably. The five-year swap now sits at 3.632%, down from 3.82% a month ago, while the two-year swap is at 3.599%, having dropped from 3.816% over the same period. The three-year swap shows a similar story, sitting at 3.567% compared to 3.781% a month ago.
“We’ve seen a series of cuts come through this morning. TSB has reduced a range of its product transfer and additional borrowing rates by up to 0.2%. HSBC has made reductions across both residential and BTL rates. Barclays has not only lowered pricing on several existing products but also launched some competitively priced new deals, particularly at 95% loan to value. Principality has made some of the largest cuts, with reductions of up to 0.51% on certain residential products, alongside cuts to BTL, holiday let and joint borrower sole proprietor ranges. Even their standard variable rate (SVR) is coming down, now falling to 6.92%.”
Mendes added: “While swap rates are moving down and markets remain reasonably confident that the Bank of England will cut the base rate at some stage this year, the next cut in August is looking increasingly likely.
“One thing that’s clear is that borrowers shouldn’t become complacent. Sitting on a lender’s SVR or delaying committing to a new deal as you approach the end of your current fixed rate in the hope that fixed rates will fall further is risky.”
