Both banks make chunky cuts, which also benefit those with smaller deposits See more This is Money on Google - save us as a Preferred SourceBy ED MAGNUS, SENIOR THIS IS MONEY REPORTER Updated: 11:55 BST, 29 May 2026
Two major high street banks have today cut mortgage rates, in what brokers are hailing as a 'significant shift'. Barclays has cut its rates across the board by up to 0.43 percentage points - with the highlights including a 5.85 per cent three-year fixed rate for those with a 5 per cent deposit reducing to 5.42 per cent, with a £899 fee. This means someone with a £200,000 mortgage being repaid over 25 years would pay £1,219 a month with this deal, down from £1,270 a month yesterday NatWest has cut its rates by up to 0.54 percentage points - with the highlight being its two-year tracker rate remortgage deal for those with just 20 per cent equity in their home (80 per cent loan-to-value).Experts said the easing of tensions in the Iran war has helped - but they warned that sentiment could change very quickly if it escalates again. Big cuts: Barclays has sliced rates on its mortgagesJustin Moy, managing director at EHF Mortgages, said swap rates have gone down and that was now feeding into mortgage rates.But he warned it's important for borrowers to act 'quickly' just in case. 'We have seen so many times this year, rates can increase with little notice,' he added.Fixed rate mortgage pricing is largely based on Sonia swap rates - the inter-bank lending rate, which is based on future interest rate expectations.When Sonia swaps rise it often results in fixed mortgage rates going up, and vice versa when they fall.Two year swaps are today at 4.05 per cent, down from 4.24 per cent a month ago, while five-year swaps are at 4.07 per cent, down from 4.22 per cent.'Some significant cuts from a number of high street lenders, as swap rates improve and the likelihood of base rate increases in 2026 recedes.Jack Tutton, director at Fareham-based SJ Mortgages, said there is 'growing optimism' among brokers.'This marks a significant shift in the market, with many lenders reducing some of their rates today,' said Tutton.'These widespread cuts are set to increase competition in the mortgage market as summer approaches, bringing welcome news for those planning to move 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.'Barclays also reduced its lowest two-year fix from 4.6 per cent to a market leading 4.39 per cent.The product, which comes with an £899 fee, is available to those buying with a 40 per cent deposit or more.On a £200,000 mortgage being repaid over 25 years that would mean paying £1,099 a month.Other standout moves by Barclays includes a cut to its two-year fixed rate deal aimed at a household remortgaging with 25 per cent equity in their home (75 per cent loan to value).The rate, which was 4.9 per cent with a £999 product fee is now 4.73 per cent. While Leeds Building Society currently offers a lower rate at 4.64 per cent, that comes with a much higher £1,499 fee. Best mortgage rates and how to find them Mortgage rates have shot up again due to inflation triggered by the conflict with Iran reversing hopes that the Bank of England would cut rates. This means those remortgaging or buying a home face higher costs.That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord.This is Money's partner L&C can help you with its fee-free mortgage service.> Compare mortgage rates> Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C.This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit.You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.If you’re ready to find your next mortgage, why not use This is Money and L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you.> Find your best mortgage deal with This is Money and L&C Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
