BARCLAYS and NatWest have announced mortgage rate cuts from tomorrow as the market heats up amid the May heatwave with brokers hailing a “significant shift”.
Barclays has cut its rates across the board by up to 0.43% – with the highlight being its 5.85% purchase three-year fixed rate 95% Loan to Value (LTV), with a fee of £899 and a maximum loan of £570,000, decreasing to 5.42%.
While NatWest has cut its rates by up to 0.54% – with the highlight being its two-year tracker rate remortgage at 80% LTV with a fee of £995 being cut to 4.42%.
Coventry Building Society (BS) has also announced reductions across its range.
This comes as Santander lowered its rates by up to 0.23% last week while Gen H cut its mortgage rates by up to 0.3% earlier this week.
Experts said the easing of tensions in the Iran war has helped – but they warned that sentiment could change very quickly if it escalates again.
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said swap rates have gone down and that was now feeding into mortgage rates.
He added: “Some significant cuts from a number of high street lenders, as swap rates improve and the likelihood of base rate increases in 2026 recedes.
“But it’s so important for borrowers to act ‘quickly’ just in case, as we have seen so many times this year, rates can increase with little notice.”
Some significant cuts from a number of high street lenders
Jack Tutton, Director at Fareham-based SJ Mortgages, said there is “growing optimism” among brokers.
He added: “This marks a significant shift in the market, with many lenders reducing some of their rates today. These widespread cuts are set to increase competition in the mortgage market as summer approaches, bringing welcome news for those planning to move in the coming months.
“Borrowing costs have fallen over the past month, leading to the reductions released today, and there is growing optimism that this trend will continue with further rate cuts expected in the near future.”
Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, said summer was a “buying season”.
He added: “Welcome news for once. Swaps are easing, base rate fears for 2026 are fading, and the high street has finally taken the hint. Barclays, NatWest and Coventry are all trimming rates, and the timing could not be better with summer and the buying season nearly here.
“A word of caution though. Cheaper rates have a habit of vanishing as fast as they appear, so do not sit on your hands. If you are buying or coming to the end of a deal, get your numbers reviewed now and lock something in while the mood is good. Optimism is lovely, but a secured rate is better.”
This marks a significant shift
Katy Eatenton, Mortgage & Protection Specialist at St Albans-based Eatenton Finance, encouraged borrowers to lock in rates now.
She added: “Great news to get what tends to be a quiet time or year ramped up and moving in a positive direction. The downward direction of rates should give comfort to those coming off super low rates this summer.
“I still encourage those hoping to move or remortgage this year to lock a rate in early, just in case things change”
Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, said these rates could be a sign of things to come.
He added: “The mortgage market is schizophrenic currently, with lenders increasing and decreasing rates week by week and movements within the market daily. It is great to see rates coming down, especially across leading lenders and coordinated moves.
“This could be a sign of things to come, but with geopolitics indirectly driving mortgage rates anything could happen whilst Donald Trump is directing policy.”
