Mortgage Rates Cut by Barclays Following Bank of England’s Interest Rate Decision

The Bank of England’s decision to hold interest rates at 5.25% has led to several lenders cutting their mortgage rates. Barclays is among them, reducing rates on three of its fixed-rate mortgage deals. This move is expected to bring relief to some borrowers.

Barclays cuts mortgage rates

The Bank of England’s Monetary Policy Committee (MPC), led by Andrew Bailey, voted 7-2 to keep interest rates on hold. The MPC’s next interest rates vote is in August, with many analysts anticipating a reduction in the base rate amid falling inflation.

Rachel Springall, a finance expert at Moneyfacts, commented: “It’s good to see some lenders reducing their fixed-mortgage pricing, so it’s worthwhile for borrowers to review the latest deals out there so they don’t miss out.”

Barclays is not the only lender to cut its mortgage rates. HSBC has also announced it will be reducing a range of its deals, although the exact amounts have not been disclosed. Smaller lender MPowered Mortgages has also cut rates on several of its fixed-rate mortgage deals.

 Mortgage rates set to fall?

While some borrowers will benefit from lower rates, the picture is more complex for existing borrowers or those remortgaging. Justin Moy, managing director of EHF Mortgages, noted: “Barclays have made a positive start this week by passing on swap rate improvements to those looking to buy a new home.”

With cuts across their purchase range, it is likely that other lenders will follow a similar pattern. However, keeping remortgage or existing borrowers paying higher rates won’t please the majority of borrowers.

 Will more lenders follow suit?

As the mortgage market continues to evolve, borrowers must remain vigilant and review the latest deals available. With the Bank of England’s next interest rates vote in August, there may be more changes on the horizon. Stay informed with the latest mortgage news and updates from MortgageWatch.