Barclays’s recent mortgage rate cuts are a “beacon of hope for many borrowers”, Brooklyns Financial director, Harps Garcha, has argued.
Barclays has announced a series of rate cuts, such as reducing its 5-year fixed, 60 per cent LTV product from 4.77 per cent to 4.32 per cent in its remortgage range, and its product purchase equivalent being reduced from 4.47 per cent to 4.34 per cent.
Garcha said, with Barclays taking the lead and making “substantial” reductions, it’s a “welcome relief to witness some of the financial strain being lifted”.
She described the announcement as a “potentially pivotal moment” where the domino effect of one lender’s positive actions could inspire more widespread cuts across the industry.
Lifetime Wealth Management mortgage and protection specialist, Katy Eatenton, said: “Finally, some good news for Britain’s beleaguered borrowers.
“I’m praying other big lenders will follow suit. Barclays’ rates aren’t competitive currently so this will put them in a more favourable position when speaking with borrowers.”
Lawson Financial director, Michelle Lawson, added: “These are good reductions rather than token gestures so we are waiting now for the domino effect as other lenders follow.
“This is some much needed positivity during what, for many borrowers, are very anxious times.”
However, Barnsdale Financial Management principal adviser, Scott Taylor-Barr warned individuals not to "get too excited", saying Barclays rates "were off the pace, this is them moving back up the pack, not making a break off the front".
“While rate reductions are always a good news story, it’s important to view them in context of the overall market, and in this case, Barclays have been more expensive than their peers recently, so this is them moving back to a competitive place in the market.”
Barclays announcement follows a recent downward trend in swap rates, as pointed out by Lodestone Mortgages and Protection director, Craig Fish.
“Just recently we have seen swap rates reducing in line with the positive commentary and data emerging from the Bank of England,” Fish explained.
“Even if they aren’t all ready to reduce rates yet, we do at last have a lender that is on the side of borrowers.
“These reductions from Barclays are good ones, and I now expect more of the major lenders to follow.”
Thanks to the Newspage community for sharing their thoughts with FT Adviser.
tom.dunstan@ft.com
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