NatWest and Barclays Announce Mortgage Rate Reductions
Market Updates

NatWest and Barclays Announce Mortgage Rate Reductions

By Dr. Priya Sharma, Property Markets Analyst · 4 August 2026 · 2 min read

Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

NatWest and Barclays Announce Mortgage Rate Reductions

NatWest and Barclays have both implemented reductions to mortgage rates across a range of products, with changes effective from late May 2026. The rate cuts apply to new and existing borrowers, including first-time buyers, purchase borrowers, remortgage customers, and buy-to-let deals.

NatWest has introduced rate cuts across its mortgage range, effective from 29 May. Notable reductions include its first-time buyer two-year fixed mortgage at 90% loan to value (LTV) with no fee, which has dropped from 5.56% to 5.35%. The same product with a £995 fee has been reduced from 5.15% to 5.05%, and the fee-free alternative at 90% LTV is now 5.22%, down from 5.29%.

For purchase borrowers, NatWest’s two-year fix at 60% LTV with a £995 fee has been cut from 4.78% to 4.59%, and the option with a £1,495 fee is now 4.54%, down from 4.73%. The two-year fixed purchase deal at 75% LTV with a £995 fee has also been reduced from 4.83% to 4.71%. Existing borrowers taking further advances can access reductions of up to 0.16%, with the two-year fix at 90% LTV with a £995 fee now at 5.3%, down from 5.46%. Cuts have also been made to buy-to-let and Help to Buy deals.

Barclays has also reduced rates for existing borrowers across its purchase, remortgage, and existing customer reward ranges. The two-year fixed purchase product at 60% LTV with an £899 fee has been cut from 4.6% to 4.39%, while the fee-free option is now 4.64%, down from 4.79%. The three-year fix at 90% LTV with an £899 fee has been reduced from 5.38% to 5.25%, and the 95% LTV alternative is now 5.42%, down from 5.85%. The fee-free five-year fix at 85% LTV has been lowered from 5.15% to 5.1%.

For remortgage-only borrowers, Barclays’ two-year fix at 60% LTV with a £999 fee has been cut from 4.83% to 4.66%, and the 75% LTV equivalent is now 4.73%, down from 4.9%. The five-year fixed remortgage at 60% LTV with a £999 fee has also been reduced from 4.83% to 4.65%.

These changes may be relevant for letting agents and inventory clerks monitoring mortgage trends that could impact landlord and tenant activity in the UK property market.


Source: Mortgage Solutions
About the author
Dr. Priya Sharma
Property Markets Analyst

Dr. Priya Sharma writes The Property AI's data-led coverage of UK property markets — rental indices, sold-price trends, mortgage flows, and regional analysis. Articles bylined Dr. Sharma cite ONS, Land Registry, Bank of England, and primary research data.

PhD Economics. Specialises in: ONS Index of Private Housing Rental Prices, Land Registry data, regional rental analysis, mortgage approvals trends.

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