Barclays Cuts Mortgage Rates, 5-Year Deal at 3.96%

Barclays is set to lower mortgage rates starting Tuesday, including a five-year fixed-rate Green Home mortgage at 3.96%, down from 3.99%. This offer is available to buyers purchasing energy-efficient new-build homes directly from developers, requiring a 40% deposit and an £899 product fee.

Other updates in Barclays’ mortgage range include a two-year fixed-rate deal at 4.93% for borrowers with a 10% deposit, with no product fee. Additionally, Barclays has increased loan limits for properties with a 10% deposit, raising the cap from £570,000 to £640,000 for houses and from £275,000 to £310,000 for flats.

Sian McIntyre, managing director of mortgages and savings at Barclays, highlighted that the bank has introduced several rate cuts this year, helping to improve affordability.

Meanwhile, Nationwide Building Society also reduced some mortgage rates on Friday, including a 3.99% five-year fixed-rate deal for both existing customers switching mortgages and new customers remortgaging, requiring a 40% deposit with fees ranging from £999 to £1,499.

Finance expert Rachel Springall from Moneyfactscompare.co.uk noted that Barclays’ move is promising for borrowers looking for lower rates this spring. However, she advised consumers to evaluate the full terms of any mortgage deal before committing.

Matt Smith, a mortgage expert at Rightmove, added that the market has remained stable despite inflation concerns, with average mortgage rates gradually declining and some sub-4% deals reappearing for those with large deposits.