The lender announced it would be cutting prices on a number of its two-year fixed rate mortgage deals from today.
But the stand out offering among these was a sub-4% deal which was for those buying a home with 40% equity. The two-year fix has a rate of 3.99% and comes with a £899 fee.
It comes just a day before the first Labour Budget and as lenders have been leaning towards price increases rather than cuts.
Indeed, on the same day Nationwide – one of the only main lenders which had not yet made price increases – has hiked many of its fixed-rate deals by up to 0.15%.
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management, speaking to the Newspage Agency, said Barclays price cuts were ‘just what the doctor ordered during Budget week’.
“This Budget is already shaping up to be Trussgate 2.0, so lenders ignoring the negative is just what is needed to keep the property markets moving,” she said.
However, with nerves still frayed around the Budget, other brokers are urging borrowers this week may not be plain sailing.
Justin Moy, managing director at EHF Mortgages, also via the Newspage Agency, said: “Borrowers with bigger deposits looking for shorter-term deals will be delighted to see sub-4% options back available for purchases, with remortgaging not a million miles behind.
“Will this all change after the Budget this week? This week is going to be a potential rollercoaster ride, so grab rates whilst you can just in case. Let’s hope we can ride the turbulence of the next week or so and get another rate cut from the Bank of England on 7 November.”
The Autumn Budget takes place on Wednesday (30 October) and the next interest rate decision by the Bank of England is due on Thursday 7 November at 12pm. It has been widely predicted there will be another interest rate cut when the Bank of England’s decision makers next meet, but the outcome of the Budget could be critical to their next move.
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