Mortgage rates fell over the course of this week as Barclays PLC (LSE:BARC) was among lenders to reduce interest in response to easing swap rates.
According to Moneyfacts, interest on the average two-year fixed-rate mortgage sat at 5.5197% come Friday, against 5.5352% a week earlier.
Barclays on Wednesday became the first major lender to cut rates following a string of hikes in recent weeks, despite the Bank of England’s interest rate reduction earlier in the month.
Rates on selected products were to be cut by up to 0.2%, the bank signalled, following a “volatile” period on the swap market, which is used to price mortgages.
“Barclays has made a bold move as the first high street lender to cut mortgage rates in response to recent market changes,” Nicholas Mendes, of broker John Charcol, stated.
“With swap rates easing over the past couple of days, it’s great to see a lender acting quickly to reflect the slightly improving conditions.”
Despite the short-term decline, the Bank of England separately warned on Friday that millions of households were set to remortgage at higher rates over the coming years.
Some 4.4 million homes were in line to refinance ahead, following a jump in rates in recent years, the bank said in its latest financial stability report.