Mortgage rates slashed on Friday by 2 major high street banks as market heats up

Barclays and NatWest have cut mortgage rates further today, as brokers hail a “significant shift” in the market.

Barclays reduced its rates across the board by as much as 0.43% on Friday, while NatWest lowered rates by up to 0.54%. Barclays’ standout offer is its three-year fixed-rate mortgage for purchases at a 95% Loan to Value (LTV) ratio at 5.42%. Notably for NatWest, its two-year tracker rate remortgage for an 80% LTV has been cut to 4.42%.

Additionally, Coventry Building Society has announced reductions across its entire product 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.

Mortgage experts said the easing of tensions in the Iran war has helped, but have 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, which are now feeding into mortgage rates.

He said: “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.”

Jack Tutton, director at Fareham-based SJ Mortgages, said there is “growing optimism” among brokers.

He said: “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, urged borrowers “not to sit on your hands”.

He said: “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.”

Katy Eatenton, mortgage and protection specialist at St Albans-based Eatenton Finance, 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”