Thu, 10 Apr 2025

Thu, 10 Apr 2025 Barclays cuts rates on some mortgages to below 4%

It is the biggest lender so far to offer cheaper deals as the Bank of England is forecast to make more interest rate cuts this year.

* Barclays has cut its mortgage rates to 3.99% on certain fixed-term deals, becoming the biggest UK lender to do so.
* The move follows uncertainty caused by US tariff policy and predictions of interest rate cuts by the Bank of England this year.
* Several other lenders, including Coventry Building Society, TSB, the Co-operative Bank, and Bank of Ireland, have also cut rates this week.
* The average two-year fixed mortgage rate has fallen to 5.29% and the average five-year fix has dropped to 5.14%.
* Analysts had previously predicted two interest rate cuts by the Bank of England this year, but now expect four cuts due to concerns over tariffs causing an economic slowdown.
* Swap rates, which influence mortgage deals, have been falling but bounced back slightly after Trump paused some tariffs.
* Experts warn that trying to predict or take advantage of future interest rate cuts can be "fraught with danger".
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