Specifically, Barclays’ two-year fixed rate at 60% loan-to-value (LTV) has dropped from 5.15% to 4.95%, while the five-year fixed rate at the same LTV has fallen from 5.13% to 4.99%. Both products carry an £899 product fee. For 75% LTV products, two-year fixed rates start at 5.02% for Premier customers and 5.05% for standard rates. Remortgage options have also seen adjustments, with the lowest two-year fixed rate at 60% LTV now standing at 5.02% for Premier customers. Existing customers in Barclays’ Reward range are seeing reductions of up to 22 basis points on two and five-year fixed deals.
The widening competition among lenders is reflected in market data from Moneyfacts, which recorded the average two-year fixed homeowner mortgage rate at 5.83% on the morning of April 22, down from 5.87% the previous day. Santander UK implemented its second round of cuts this month, lowering rates by up to 0.25 percentage points effective April 24. These cuts affect first-time buyers, home movers, and remortgaging customers. HSBC UK also updated its mortgage range after reducing rates the previous week, introducing further cuts for both new buyers and refinancers. Skipton Building Society and Barclays trimmed rates earlier in the week, while Virgin Money applied reductions across residential and buy-to-let products.
Mortgage pricing is closely linked to swap rates, which have begun to ease, allowing lenders to pass on some savings to borrowers. However, officials and market observers note that ongoing global uncertainty, including geopolitical tensions in the Middle East, continues to create market volatility. This environment sustains expectations for relatively high interest rates, limiting the scope for more significant declines in mortgage costs. The recent cuts represent a continuation of a competitive cycle where lenders are adjusting offers shortly after earlier reductions to attract customers in a still-expensive borrowing market.
