Residential rate reductions announced by Barclays

August 20, 2025 by Brendan O'Neill

Rates

Barclays has announced a number of reductions to its mortgage rates, with these set to affect products from within its residential mortgage range.

The lender has cut rates across many of its existing customer reward, remortgage and purchase products. When it comes to the last of those, fixed two-year loans with loan to value (LTV) of 85% have had their rates cut to 4.12%, whereas before they were 4.22%. Fixed five-year mortgages with the same LTV now come with a rate of 4.23%. That is a substantial drop from the previous rate of 4.37%. Barclays has also cut the rate for its fixed five-year purchase loan with 95% LTV. That previously stood at 4.99%, but it has now been reduced to 4.80%.

In terms of its remortgage products, Barclays has cut the rate for the fixed two-year loan with LTV of 85%. Whereas before it was set at 4.75%, the rate now stands at 4.39%. The fixed five-year 85% LTV product known as ‘The Great Escape’ is another one that has seen a rate cut. It has gone from 4.70% to 4.40%.

These moves by Barclays are happening within a competitive environment. The base rate reduction by the Bank of England has led many lenders to respond by cutting their rates.

This is something that mortgage advisors will be watching intently, as there is the potential for them to find better deals for their clients, which is the aim those with CeMAP mortgage advisor training learn about.