Barclays Increases Mortgage Rates Post-Election Call

Barclays recently announced an increase in mortgage rates shortly after the election call made by Mr. Sunak. The Office of National Statistics headline rate decline was cited by Mr. Sunak as an indication of the effectiveness of the Tories' plan. The three-year fixed-rate mortgage at Barclays will see a 5.8% increase to 4.57%, while remortgaging offers will go up by up to 0.25 percentage points. Moreover, interest rates on two-year fixes for purchases and remortgages exceeding 2m will rise by up to 0.3 percentage points, with a two-year fix at a 75% Loan-To-Value (LTV) increasing to 5.05%. Despite recent rate cuts by Barclays, TSB, and HSBC, Barclays' decision has positioned its offerings above those of its competitors. In contrast, Santander and other major lenders have announced cuts in their mortgage rates. Santander, for instance, will reduce its five-year fixed-rate mortgage on a 60% LTV from 4.5% to 4.42%, with drops of up to 0.26% on three-year fixes starting from Friday. Furthermore, prospective landlords will benefit from buy-to-let rate cuts at Santander, with a two-year fix at a 75% LTV priced at 4.96%. TSB is also set to lower its rates for first-time buyers by up to 0.40%, and reintroduce two-year trackers for new and existing mortgage customers. Lenders like Halifax have also announced cuts following the release of inflation data on Wednesday. The Bank of England has maintained the Bank Rate at 5.25% since August, following 14 consecutive increases from December 2021.