BARCLAYS is the second high street lender to come out of the blocks with rate cuts in 2026, following HSBC earlier this week. Brokers said the move, seeing more rates enter the 3.5%s “is an important signal of the direction rates are headed” and that it will “put pressure on other lenders to take note”.
Purchase product highlights from Barclays include a 3.63% 2-year fixed rate mortgage with an £899 product fee at 60% loan-to-value (LTV), which will decrease to 3.57%.
Remortgage product highlights include a 3.82% 2-year fixed rate mortgage with a £999 product fee at 75% LTV, which will decrease to 3.78%.
Only this morning, the Halifax said that affordability is better than it has been for a decade due to slowing house prices and rates edging down will further help oil the wheels of the mortgage and property market.
High Street wakes from Christmas slumber
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, welcomed the news: “This is encouraging news from Barclays as the High Street wakes from its Christmas slumber. People purchasing property will see the largest cuts, with rates now in the 3.5% range for those with larger deposits.
“For those looking to remortgage, these new rates match the best currently available, which helps more borrowers take advantage of this improved pricing.”
Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, added: “Barclays cutting mortgage rates so early in 2026 is an important signal of the direction rates are headed. These aren’t headline-grabbing cuts, but lenders don’t move first unless they’re confident funding costs are easing and the wider outlook is improving.
“My view is that this is the start, not the finish. I expect steady, gradual reductions through 2026 rather than sharp drops. For first-time buyers in South Wales, this opens real opportunity.”
Omer Mehmet, Managing Director at Trinity Finance, said: “Following last month’s base rate cut and inflation once again edging down, it’s no surprise to see lenders continue to shave their rates.
“A lot of brokers are anticipating a busy first three months of the year. In part this will come due to lower rates, but there is also significant pent-up demand from transactions that were put on ice ahead of the late November Budget.”
Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, said these latest rate cuts will prove beneficial to the estimated 1.9m people due to remortgage in 2026.
She added: “If one big lender makes some cuts, as it has today, we could see a domino effect that will delight borrowers. A huge number of people are set to remortgage this year and mortgage rates edging down will help to reduce the pressure many households are under.”
Lower risk borrowers targeted
Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said: “Barclays is aggressively targeting the ‘safety’ of lower risk borrowers right now. If you have a 40% deposit (or equity), you are in the sweet spot for these cuts.
“Barclays are reserving their absolute lowest rates for the 60% LTV tier. While 80% LTV rates are edging down, the gap is widening, meaning your larger deposit is working much harder for you today than it was six months ago.”
Harry Goodliffe, Director at HTG Mortgages, said the cuts from Barclays are a welcome kick-start to 2026 and exactly the kind of move the market was waiting for.
He continued: “It won’t trigger a full-blown rate war overnight, but it does put pressure on other lenders to take note, particularly at higher deposit levels where competition always hits first. I’d expect a handful of challengers and then some of the bigger high street names to follow suit.”
