Barclays cuts mortgage rates: Lender to offer best-buy five-year fix

Barclays is unleashing another wave of mortgage rate cuts, as competition among lenders intensifies. 

From tomorrow, the bank is slashing a number of rates across its two-year and five-year fixed products aimed at home buyers, including launching a new best buy.

The move by Barclays comes in the aftermath of a flurry of rate cuts over the past week that has seen lenders reprice on a daily basis.

First, Nationwide Building Society broke the 4.5 per cent barrier, after it slashed its fixed rates by up to 0.43 percentage points.

Then on Tuesday, NatWest slashed selected fixed rates by up to 0.4 percentage points for residential deals with its best five-year fixed rate falling to 4.47 per cent.

 The following day Santander confirmed a wave of mortgage cuts.

> This is Money mortgage finder: Check the best rates you could get 

This was followed today by Virgin Money, which announced a limited time deal offering a five-year fix as low as 4.42 per cent.

TSB has also announced rate cuts of up to 0.45 percentage points and Accord Mortgages has announced cuts of up to 0.3 percentage points.

However, Barclays has now surpassed them all with its 4.39 per cent five year fixed rate aimed at those buying with at least a 40 per cent deposit. It comes with a £899 product fee.

Someone purchasing a property worth £350,000 with a £200,000 mortgage, repaying over 25 years, would have monthly payments of £1,099 on that rate.

New deals from Barclays will also include a 4.7 per cent five-year fix aimed at those buying with at least a 25 per cent deposit.

For those buying with a 10 per cent deposit, Barclays is now offering a 4.95 per cent rate, with a £999 fee.

Nicholas Mendes of mortgage broker John Charcol is expecting further rate cuts to follow.

He says: ‘Nationwide were leading the best buys at the start of the week, only to be subtly edged by Virgins purchase exclusive five-year fix at 4.42 per cent.

‘Barclays latest reprice moves it comfortably at the top of the best buys heading into the weekend.

I expect we will see another lender reprice before the weekend or early next week to kick off the festive season.’

A statement from Barclays said: ‘The market is moving at a fast pace and we are committed to remaining nimble with our pricing to ensure we continue to provide you with our most competitive offering.’