Barclays has introduced a fresh round of mortgage rate cuts effective from Friday, January 9, 2026. These reductions follow a Bank of England base rate cut to 3.75% in late December 2025 and aim to increase competitiveness in a market where 1.8 million borrowers are expected to remortgage this year.
Key Rate Reductions (Effective Jan 9, 2026)
The cuts apply to residential purchase, remortgage, and existing customer reward products, with the largest reductions reaching 0.36%.
- Residential Purchase Deals:
- 2-Year Fixed (60% LTV): Reduced to 3.57% (with £899 fee) or 3.56% for Premier customers.
- 2-Year Fixed (75% LTV): Reduced to 3.61% (with £899 fee).
- 2-Year Fixed (80% LTV): Reduced by 0.36% to 3.62% (with £899 fee).
- 5-Year Fixed (80% LTV): Reduced to 4.00% (fee-free).
- Remortgage Deals:
- 2-Year Fixed (75% LTV): Reduced to 3.78% (with £999 fee).
- 5-Year Fixed (60% LTV): Reduced to 3.76% (with £999 fee).
- Great Escape 2-Year Fixed (60% LTV): Reduced to 4.00% (fee-free).
- Existing Customer Rewards (EMC):
- 2-Year Fixed (60% LTV): Reduced to 3.67% (with £999 fee).
- 5-Year Fixed (60% LTV): Reduced to 3.75% (with £999 fee).
Variable Rate Changes (Effective Jan 1, 2026)
Following the Bank of England’s December decision, Barclays adjusted its variable rates at the start of the year:
- Standard Variable Rate (SVR): Reduced from 7.49% to 7.24%.
- Follow-on Rate: Reduced from 5.99% to 5.74%.
Market Context and Outlook
- Borrowing Power: Barclays currently offers up to six times salary mortgages for certain two-year fixed products priced just over 3.5%.
- Competition: These moves align with similar cuts from major lenders like Halifax and HSBC as they compete for a smaller pool of property transactions in 2026.
- Future Predictions: Experts expect “steady, gradual reductions” through 2026 rather than sharp drops, with the base rate potentially falling to 3.25% or 3.5% by the end of the year.
For personalized options, you can use the Barclays Mortgage Calculator or view their latest Fixed-rate Mortgage Tables.