Barclays slashes mortgage interest ahead of ‘likely’ Bank of England base rate cut

has announced a wave of new deals, launching new products and reducing across its purchase and remortgage ranges.

The move comes as brokers speculate that February could mark the start of widespread rate reductions, with lenders positioning themselves ahead of a possible base rate cut.

Barclays’ standout deals, launched on Tuesday, include a 4.38% two-year fixed rate at 60% Loan To Value (LTV) for homebuyers and a 5.23% five-year fixed rate at 85% LTV for remortgagers.

Notably, the 5.24% two-year tracker at 60% LTV comes with no product fee, while Green Home mortgages have also seen competitive pricing, with five-year fixed rates starting at 4.13% for 60% LTV.

The new deals come after Coventry Building Society announced reductions of up to 0.27% on all owner-occupier fixed rates and up to 20% on buy-to-let rates this week.

Katy Eatenton, and protection specialist at Lifetime Wealth Management, said: “A handful of lenders have announced cuts, and long may it continue, as every penny counts for borrowers at present. This is likely to be lenders preempting the expected Bank of England rate cut on Thursday.”

Dariusz Karpowicz, director at Albion Financial Advice, said: “The market has sparked into life, with Barclays joining Coventry in a rate-cutting spree that’s turning heads and lifting spirits after January’s malaise.

“Their competitive new lineup, featuring notable reductions across purchase and remortgage products, suggests major lenders are finally ready to sharpen their pencils. With the Bank of England’s rate decision looming on Thursday, these early moves could herald the start of the competitive lending landscape that January promised but failed to deliver.”

However, he added: “Whether this marks the beginning of a genuine price war or merely a strategic positioning ahead of market shifts remains to be seen.”

Riz Malik, independent financial adviser at R3 Wealth said: “Valentine’s Day seems to have arrived early in the market, with several lenders introducing rate cuts as February begins.

“With a base rate decision on the horizon, this is promising news for both new borrowers and those looking to remortgage.”

The Bank of England’s Monetary Policy Committee, which sets the central , will meet on Thursday, February 8, to announce its latest decision. Markets are closely watching for a potential rate cut, which could further influence pricing in the coming weeks.

Barclays new mortgage deals – full list

New products:

• 5.29% – 2-Year Fixed, 90% LTV, £899 fee
• 4.13% – Green Home 5-Year Fixed, 60% LTV, £899 fee
• 4.26% – Green Home 5-Year Fixed, 75% LTV, £899 fee
• 5.24% – 2-Year Tracker, 60% LTV, No fee

Key purchase rate reductions:

• 2-Year Fixed, 60% LTV, £899 fee – 4.38% (down from 4.43%)
• 5-Year Fixed, 75% LTV, £899 fee – 4.36% (down from 4.42%)

Key remortgage rate reductions:

• 2-Year Fixed, 75% LTV, £999 fee 4.64% (down from 4.72%)
• 5-Year Fixed, 85% LTV, £999 fee – 5.23% (down from 5.27%).