Mortgage charges slashed on Friday by 2 main high avenue banks | Personal Finance | Finance

Barclays and NatWest have cut mortgage charges further immediately, as brokers hail a “significant shift” in the market.

Barclays lowered its charges across the board by as much as 0.43% on Friday, while NatWest lowered charges by up to 0.54%. Barclays’ standout offer is its three-year fixed-rate mortgage for purchases at a 95% Loan to Value (LTV) ratio at 5.42%. Notably for NatWest, its two-year tracker price remortgage for an 80% LTV has been cut to 4.42%.

Additionally, Coventry Building Society has announced reductions across its complete product vary. This comes as Santander lowered its charges by up to 0.23% last week, while Gen H cut its mortgage charges by up to 0.3% earlier this week.

Mortgage consultants said the easing of tensions in the Iran struggle has helped, but have warned that sentiment could change very rapidly if it escalates again.

Justin Moy, managing director at Chelmsford-based EHF Mortgages, said swap charges have gone down, which are now feeding into mortgage charges.

He said: “Some significant cuts from a number of high street lenders, as swap rates improve and the likelihood of base rate increases in 2026 recedes.

“But it’s so important for debtors to act rapidly just in case, as we have seen so many instances this yr, charges can increase with little discover.”

Jack Tutton, director at Fareham-based mostly SJ Mortgages, said there is “growing optimism” among brokers.

He said: “This marks a vital shift in the market, with many lenders lowering some of their charges immediately. These widespread cuts are set to increase competitors in the mortgage market as summer time approaches, bringing welcome information for those planning to transfer in the coming months.

“Borrowing costs have fallen over the past month, leading to the reductions released today, and there is growing optimism that this trend will continue with further rate cuts expected in the near future.”

Dariusz Karpowicz, director at Doncaster-based Albion Financial Advice, urged debtors “not to sit on your hands”.

He said: “If you are buying or coming to the end of a deal, get your numbers reviewed now and lock something in while the mood is good. Optimism is lovely, but a secured rate is better.”

Katy Eatenton, mortgage and safety specialist at St Albans-based Eatenton Finance, added: “Great news to get what tends to be a quiet time or year ramped up and moving in a positive direction. The downward direction of rates should give comfort to those coming off super low rates this summer.

“I still encourage those hoping to transfer or remortgage this yr to lock a price in early, just in case issues change”