Barclays has reduced interest rates on several home loan products. This move comes as other major lenders also trim their offerings. Borrowers may find better deals as a result.
The changes took effect on January 9, 2026. They apply to loans for buying homes and switching lenders.
Details on Barclays’ New Rates
The bank made cuts across different loan types. Some reductions reach up to 0.36 percentage points. This brings their lowest rate to 3.56 percent for certain customers.
Here are key examples:
- For home purchases at 60 percent loan-to-value with a £899 fee, the two-year fixed rate dropped to 3.57 percent.
- At 75 percent loan-to-value with no fee, the two-year fixed now stands at 3.81 percent.
- A five-year fixed at 80 percent loan-to-value with no fee is down to 4.00 percent.
These apply to loans from £5,000 up to £2 million in most cases.
Existing customers see benefits too. Reward program rates fell, such as a two-year fixed at 60 percent loan-to-value now at 3.67 percent with a £999 fee.
How Other Lenders Respond
HSBC started the year with cuts on January 5, 2026. They lowered rates for home buyers and landlords.
Halifax followed suit on January 9. Their reductions go up to 0.16 percentage points on select deals.
Santander holds a strong position. Their two-year fixed rate sits at 3.55 percent with a £749 fee at 60 percent loan-to-value.
This activity pushes average rates lower. A standard two-year fixed is around 4.81 percent, while five-year deals average 4.89 percent.
Wider Market Picture
These adjustments follow the Bank of England’s decision last month. It lowered the base rate to 3.75 percent in December 2025. This marked the sixth cut since August 2024.
Overall, home loan costs are at their lowest point since 2022. Lenders compete more fiercely for business.
Experts note positive signs for buyers. One broker said it creates chances for first-time homeowners and those refinancing.
More base rate drops could happen in 2026. Forecasts point to levels as low as 3.25 percent by year-end.
Borrowers should check eligibility. Factors like deposit size and credit history matter. Consulting a advisor can help find suitable options.
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