“Barclays’ latest round of cuts is welcome news for borrowers, particularly on the purchase side where some rates have come down by over half a percent,” commented Nicholas Mendes (pictured right), mortgage technical manager at broker John Charcol.
“However, this could be one of the last rounds of cuts we see for a while. Swap rates, which lenders use to price fixed mortgage deals, have risen sharply over the past few days following renewed conflict in the Middle East and the sharp jump in oil prices that’s come with it.”
Mendes advised borrowers weighing up a new fixed-rate mortgage to act sooner rather than later.
“For borrowers with a fixed rate ending in the next six months, it’s worth reviewing options now rather than waiting, as many lenders allow you to secure a new rate in advance and switch to a cheaper one later if rates fall before your current deal ends,” he said. “Those further out from renewal should keep a close eye on developments over the coming weeks, as the picture could shift quickly depending on how the conflict progresses.
“Given how much is moving at once, geopolitical risk, oil prices, swap rates and the Bank of England‘s next move, speaking to a broker is the best way to understand how these factors apply to your specific circumstances and to make sure you’re not caught out by a sudden rate change.”