Overview

• Barclays is cutting rates on select two- and five-year fixed mortgage products to 3.99%, effective Friday, marking a significant reduction from previous rates of 4.11% and 4.12%.
• These new deals are available to buyers with a 40% deposit, with product fees set at £899, and include additional reductions for Barclays Premier customers.
• Barclays is the first of the UK's 'big six' lenders to offer sub-4% fixed-rate mortgages, following similar moves by smaller lenders earlier this week.
• The decision is seen as a response to financial market volatility, driven by US trade tariffs, and declining swap rates, which influence mortgage pricing.
• Analysts predict that Barclays' move could lead to a competitive price war among major lenders, with expectations of further Bank of England interest rate cuts fueling market speculation.