It is not clear whether the mortgage lender made the decision to reduce prices before or after Donald Trump made a U-turn and pressed pause on the introduction of tariffs on some countries.
For this reason, mortgage brokers are not sure whether more of the big lenders will follow with price cuts.
In any event, Barclays’ new offering will provide positivity for borrowers. The price cuts, which are effective from tomorrow (Friday 11 April) include three sub-4% deals which are not just available in the exclusive Premier range. Indeed, the two-, three- and five-year fixed deals come with rates of 3.99% and are for borrowers with 40% equity. They have £899 fees attached.
The cuts come after Coventry Building Society reduced mortgage rates and introduced a new price of 3.89% into the sub-4% market. TSB has reduced mortgage rates this week as have Gen H and TSB.
It had been expected, following President Trump’s tariffs announcement last week, that lenders would start to lower mortgage rates as a response to market conditions.
But following Trump’s U-turn, there is less clarity over whether other lenders – including the other banks and building societies in the big six category – will follow in Barclays’ footsteps.
Pete Mugleston, mortgage advisor and managing director at Online Mortgage Advisor, speaking via the Newspage Agency, said: “These cuts may have been planned before Trump U-turned and brought in his 90-day pause. So, Barclays may have jumped the gun early, but it’s unlikely they’ll reverse course now. This could be the trigger that causes other lenders to start cutting rates, too.
“But given the unpredictability in the markets right now, it wouldn’t be a shock if other lenders held back until some semblance of stability hopefully returns in the next week or two.”
Anyone about to take out a mortgage or remortgage is being urged to seek advice from a broker to ensure they get the best deal available.
Michelle Lawson, director at Lawson Financial, via Newspage, said: “It’s fantastic to see sub-4% rates again. Whether these drops are temporary or not they are still a borrower’s bonanza.
“It is important for the public to ensure they are organised if wanting a mortgage in the coming months so they can secure these deals with a good broker while they are around.”
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