Barclays cuts mortgage rates for buyers with smaller deposits

Barclays has cut mortgage rates for home buyers with smaller deposits, marking a move that could ease borrowing costs for those facing an end to their current fixed-rate deal or stepping onto the housing ladder. The change, reported as part of This is Money's coverage of Barclays' latest mortgage tweaks, underscores how lenders are adjusting offerings to competition and market conditions as rates shift.

The reduction applies to new fixed-rate deals and is likely to influence borrowers who need a mortgage to purchase a home or to remortgage when their existing deal expires. This is Money notes that borrowers should explore their options as soon as possible, with buy-to-let landlords also encouraged to act promptly given the broader landscape of borrowing costs. Homeowners contemplating a new deal are often advised that they can lock in rates six to nine months in advance with no obligation to complete, and that some deals allow arrangement fees to be added to the loan. However, readers are cautioned that interest will accrue on any added fees over the loan’s term if those fees are not paid at completion, so this option may not suit everyone.

For those buying a home, the guidance remains clear: secure a rate early so monthly payments are known, and avoid overstretching in light of potential house-price fluctuations as higher mortgage rates continue to affect borrowing power. Buyers should consider how a new deal could influence overall affordability and future housing decisions, particularly if market conditions shift further.

Buy-to-let landlords face distinct considerations, especially for those with interest-only mortgages. The notes indicate that the cost pressures could be greater for buy-to-let borrowers, and remortgaging well in advance is essential to manage higher monthly payments. This is Money’s coverage highlights that L&C Mortgage Services can assist with buy-to-let financing as well, reinforcing the role of brokers in navigating rate options.

The recommended approach to comparing mortgage costs remains to speak with a broker. This is Money has a longstanding partnership with fee-free broker London & Country Mortgages (L&C), offering access to an online mortgage finder and a calculator that canvasses thousands of deals from more than 90 lenders to identify options aligned with a borrower’s home value, loan size, term, and fixed-rate needs. Those ready to search for their next mortgage can use L&C’s online Mortgage Finder to quickly assess current market opportunities. It’s important to note that rates can change quickly, so readers seeking a mortgage or aiming to compare rates should contact L&C promptly to determine the right fit.

Mortgage service is provided by London & Country Mortgages (L&C), which is authorized and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. The advisory and lending process remains subject to standard eligibility checks and the broader financial risks associated with taking on a mortgage. Your home or property may be repossessed if you do not keep up repayments on your mortgage.