Barclays will cut selected fixed-rate residential purchase and remortgage deals by as much as 30 basis points, introducing new sub-4% loans.

The high street lender says its changes, which come to market tomorrow (29 October), include:

Residential — purchase only

• Premier two-year fixes, with a £899 product fee, at 60% loan to value, will fall by 11bps to 3.96%
• Two-year fixes, with a £899 product fee, will fall by 11bps to 3.99%

Residential — remortgage only

• Two-year fixes, with a £1,999 product fee, will fall by 26bps to 4.28%

Purchase and remortgage

• 10-year fixes, with a £999 product fee, will fall by 30bps to 4.85%
• 10-year fixes, with a £999 product fee, will fall 30bps to 5.41%

John Charcol mortgage technical manager Nicholas Mendes says: “Barclays’ rate reductions across its mortgage products come at a crucial time, following weeks of Budget speculation and recalibration in market pricing.

“These changes offer welcome relief to borrowers, especially those nearing the end of their fixed-rate period and looking to secure lower rates.

“Recent movements in Sonia swap rates show modest increases across various terms, with the five-year rate seeing the most significant uptick of 3.4 basis points to 3.829%.

“The two-year and three-year swaps rose by 2.2 and 2.8 basis points, respectively, signalling a slight upward trend in market expectations for medium-term interest rates.

“Expectations for a doom-and-gloom budget on Wednesday have softened. While business impacts are anticipated, consumers and mortgage rates are unlikely to be affected by any announcements.”