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Barclays and Halifax Cut Fixed Mortgage Rates as Lenders Chase Scarce Business

The latest reductions follow December’s base rate cut to 3.75% , reflecting selective repricing concentrated on lower‑LTV deals.

Overview

  • Both lenders’ new pricing comes into force on Friday 9 January.
  • Barclays trimmed a two‑year 60% LTV purchase fix from 3.63% to 3.57% and cut a two‑year 75% LTV remortgage from 3.82% to 3.78%.
  • Halifax announced reductions of up to 0.16 percentage points across selected products.
  • Market benchmarks show the average two‑year fix at about 4.81% while Santander’s cheapest two‑year 40% deposit deal stands at 3.55%, according to Moneyfacts.
  • Banks are competing for limited demand as UK Finance expects slightly fewer transactions in 2026 and brokers note about 1.8 million fixed deals end this year, with some experts predicting further gradual cuts that could approach 3% for high‑equity borrowers.