Barclays cuts mortgage rates AGAIN as major lenders slash prices to lowest levels since 2022

HSBC kicked off the reductions on Monday, becoming the first major bank to lower mortgage costs in 2026 across both residential and buy-to-let products.

Barclays followed suit, with its rate cuts taking effect tomorrow across purchase and remortgage deals.

Halifax has also announced it will trim rates for homebuyers and those remortgaging from Friday, with reductions reaching up to 16 basis points on certain products.

Mortgage costs have now fallen to their lowest point since 2022.

Santander currently holds the market’s most competitive offering, with a two-year fixed deal at 3.55 per cent with £749 fee at 60 per cent loan-to-value. Nationwide has also introduced attractive rates for borrowers.

The best available rate for any individual will vary depending on several factors, including whether they are purchasing or refinancing, their preferred fixed-rate term, and how much equity or deposit they can provide.

According to Moneyfacts, the typical two-year fixed mortgage sits at 4.81 per cent, while five-year fixed deals average 4.89 per cent.

Multiple reductions to the Bank of England’s base rate throughout 2025 have driven prices down to levels not seen in nearly four years. Further cuts to the base rate are anticipated during 2026.

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Aaron Strutt, communications director at mortgage broker Trinity Financial, said the moves reflect a broader pattern of high street banks adjusting their pricing at the start of the year.

“Halifax is lowering its rates now that two of its main competitors have made pricing improvements,” he said.

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“All these price cuts so early in the year are good news for borrowers, especially those keen to get on the property ladder or remortgage.”

Mark Harris, chief executive of SPF Private Clients, noted that lenders are eager to secure more business through improved deals as 2026 gets underway.

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“With some lenders repricing on a weekly basis, it is now possible to access a short-term fix at just over 3.5 per cent,” he said.

Five-year fixed rates could dip below 3.5 per cent later in the new year, down from current levels just above 3.7 per cent.

Mr Strutt highlighted the competitive pressures facing lenders in the months ahead.

“With UK Finance predicting 10,000 fewer property transactions in 2026 compared to 2025 and 1.8 million borrowers coming to the end of their fixed rates, competition between the lenders to issue more mortgages is likely to be even stronger this year,” he said.

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“We can expect to see some more criteria easing and hopefully even cheaper fixed rates.”

Existing product rate decreases

Residential – Purchase only

• 3.62 per cent Premier two-year fixed, £899 product fee, 60 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.56 per cent
• 3.63 per cent two-year fixed, £899 product fee, 60 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.57 per cent
• 3.82 per cent two-year fixed, £0 product fee, 60 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.77 per cent
• 3.69 per cent Premier two-year fixed, £899 product fee, 75 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.60 per cent
• 3.70 per cent two-year fixed, £899 product fee, 75 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.61 per cent
• 3.90 per cent two-year fixed, £0 product fee, 75 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.81 per cent
• 3.98 per cent two-year fixed, £899 product fee, 80 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.62 per cent
• 4.18 per cent two-year fixed, £0 product fee, 80 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.82 per cent
• 3.86 per cent five-year fixed, £899 product fee, 75 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.82 per cent
• 4.08 per cent five-year fixed, £0 product fee, 80 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 4.00 per cent
• 3.72 per cent Green Home two-year fixed, £0 product fee, 60 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.67 per cent
• 3.80 per cent Green Home two-year fixed, £0 product fee, 75 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.71 per cent
• 3.76 per cent Green Home five-year fixed, £899 product fee, 75 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.72 per cent

Remortgage only

• 3.70 per cent Premier two-year fixed, £999 product fee, 60 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.67 per cent
• 3.71 per cent two-year fixed, £999 product fee, 60 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.68 per cent
• 3.82 per cent two-year fixed, £999 product fee, 75 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.78 per cent
• 4.13 per cent two-year fixed, £999 product fee, 80 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 4.09 per cent
• 4.04 per cent The Great Escape™ two-year fixed, £0 product fee, 60 per cent LTV, minimum loan £50,000, maximum loan £2million, will decrease to 4.00 per cent
• 4.12 per cent The Great Escape™ two-year fixed, £0 product fee, 75 per cent LTV, minimum loan £50,000, maximum loan £2million, will decrease to 4.10 per cent
• 4.38 per cent The Great Escape™ two-year fixed, £0 product fee, 80 per cent LTV, minimum loan £50,000, maximum loan £2million, will decrease to 4.36 per cent
• 3.80 per cent Premier five-year fixed, £999 product fee, 60 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.75 per cent
• 3.81 per cent five-year fixed, £999 product fee, 60 per cent LTV, minimum loan £5,000, maximum loan £2million, will decrease to 3.76 per cent
• 4.05 per cent The Great Escape™ five-year fixed, £0 product fee, 75 per cent LTV, minimum loan £50,000, maximum loan £2million, will decrease to 4.02 per cent

Existing Customer Reward range

Existing product rate decreases

Residential

• 3.70 per cent EMC Reward two-year fixed, £999 product fee, 60 per cent LTV, minimum loan £1,000, maximum loan £2million, will decrease to 3.67 per cent
• 4.03 per cent EMC Reward two-year fixed, £0 product fee, 60 per cent LTV, minimum loan £1,000, maximum loan £2million, will decrease to 3.99 per cent
• 3.81 per cent EMC Reward two-year fixed, £999 product fee, 75 per cent LTV, minimum loan £1,000, maximum loan £2million, will decrease to 3.77 per cent
• 4.11 per cent EMC Reward two-year fixed, £0 product fee, 75 per cent LTV, minimum loan £1,000, maximum loan £2million, will decrease to 4.09 per cent
• 3.80 per cent EMC Reward five-year fixed, £999 product fee, 60 per cent LTV, minimum loan £1,000, maximum loan £2million, will decrease to 3.75 per cent
• 3.99 per cent EMC Reward five-year fixed, £0 product fee, 60 per cent LTV, minimum loan £1,000, maximum loan £2million, will decrease to 3.95 per cent
• 4.04 per cent EMC Reward five-year fixed, £0 product fee, 75 per cent LTV, minimum loan £1,000, maximum loan £2million, will decrease to 4.01 per cent