Barclays and NatWest have unveiled mortgage rate reductions from Friday as the market gathers momentum amid the May heatwave, with brokers declaring a “significant shift”. Barclays has slashed its rates across the board by up to 0.43% — with the standout being its 5.85% purchase three-year fixed rate 95% Loan to Value (LTV), with a fee of £899 and a maximum loan of £570,000, dropping to 5.42%.

NatWest, meanwhile, has trimmed its rates by up to 0.54% — with the headline figure being its two-year tracker rate remortgage at 80% LTV with a fee of £995 being reduced to 4.42%. Coventry Building Society (BS) has similarly announced cuts across its product range.

This follows Santander lowering its rates by up to 0.23% last week, while Gen H trimmed its mortgage rates by up to 0.3% earlier this week. Experts noted that the easing of tensions in the Iran war had provided a boost — though they cautioned that sentiment could shift rapidly should hostilities escalate once more.

Justin Moy, managing director of Chelmsford-based EHF Mortgages, noted that swap rates had fallen and this was now filtering through into mortgage rates.

He added: “Some significant cuts from a number of high street lenders, as swap rates improve and the likelihood of base rate increases in 2026 recedes. But it’s so important for borrowers to act ‘quickly’ just in case, as we have seen so many times this year, rates can increase with little notice.”

Jack Tutton, director of Fareham-based SJ Mortgages, said there was “growing optimism” among brokers.

He added: “This marks a significant shift in the market, with many lenders reducing some of their rates today. 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.”

Dariusz Karpowicz, director of Doncaster-based Albion Financial Advice, said summer was a “buying season”.

He added: “Welcome news for once. Swaps are easing, base rate fears for 2026 are fading, and the high street has finally taken the hint. Barclays, NatWest and Coventry are all trimming rates, and the timing could not be better with summer and the buying season nearly here.

“A word of caution, though. Cheaper rates have a habit of vanishing as fast as they appear, so do not sit on your hands. If you are buying or coming to the end of a deal, get your numbers reviewed now and lock something in while the mood is good. Optimism is lovely, but a secured rate is better.”

Katy Eatenton, mortgage and protection specialist at St Albans-based Eatenton Finance, urged borrowers to secure rates without delay.

She added: “Great news to get what tends to be a quiet time or year ramped up and moving in a positive direction. The downward direction of rates should give comfort to those coming off super-low rates this summer. I still encourage those hoping to move or remortgage this year to lock a rate in early, just in case things change”

Samuel Mather-Holgate, MD and IFA at Swindon-based Mather and Murray Financial, said these rates could be a sign of things to come.

He added: “The mortgage market is schizophrenic currently, with lenders increasing and decreasing rates week by week and movements within the market daily. It is great to see rates coming down, especially across leading lenders and coordinated moves.

“This could be a sign of things to come, but with geopolitics indirectly driving mortgage rates anything could happen while Donald Trump is directing policy.”

A mortgage broker has revealed why climbing onto the property ladder could be far more achievable than many people believe.

Despite the prevailing mood of pessimism, the door to homeownership is “open wider than it has been in nearly two decades”, according to one industry expert. A great number of prospective buyers still labour under the assumption that mortgage lenders will only offer loans worth four-and-a-half times their salary.

However, mortgage broker Sarah Fox-Clinch argues that this belief is now well and truly outdated. In recent years, lenders have quietly grown considerably more flexible on both income multiples and deposit requirements, unlocking opportunities for borrowers who may previously have written off homeownership as beyond their means.

Sarah Fox-Clinch, director of Bristol-based mortgage broker Fox Davidson, said many buyers had little idea just how dramatically the mortgage market had shifted.

She said: “The four-and-a-half times income rule used to be the ceiling. It is now much closer to the floor. For a lot of buyers who still think getting a mortgage is impossible, the reality is that the door is open, they are just looking at the wrong door.”

One of the most significant recent developments came from NatWest, which increased its maximum loan-to-income ratio to 6.5 times earnings for joint applicants earning £150,000 or more. This means a couple with a combined income of £150,000 could potentially borrow as much as £975,000, compared to roughly £675,000 under the old four-and-a-half-times model that many borrowers still mistakenly believe to be in place.

And NatWest is hardly the only lender doing so. April Mortgages now provides up to seven times income for borrowers earning at least £50,000, on condition they secure a long-term fixed mortgage.

Teachers Building Society similarly offers seven times income for those working in education, while HSBC, Nationwide and Barclays have all raised lending multiples for certain customers.

Fox-Clinch said: “Lenders have become much more aggressive in how they assess affordability, particularly for higher earners and borrowers with stable incomes. The mortgage market today looks very different from what many buyers remember even a few years ago.”

Deposit requirements have also changed considerably. Lloyds, Halifax and Bank of Scotland recently introduced mortgage products enabling first-time buyers to purchase with deposits as low as £5,000 on properties valued up to £300,000.

Skipton Building Society has been providing its Track Record mortgage since 2023, permitting renters with a solid history of paying rent punctually to potentially borrow the full value of a property without any deposit whatsoever. Fox-Clinch believes numerous people who abandoned buying during the challenging mortgage market conditions of 2023 may now be astonished by what is on offer.

She said: “If someone walked away from a purchase two years ago because the numbers did not work, it is well worth revisiting things now. There are far more options available than many people realise.”

She also cautioned that increased borrowing thresholds and reduced deposits invariably carried heightened financial risk: “Just because somebody can borrow more does not always mean they should. Higher income multiples create larger debts and very small deposits leave borrowers with less protection if property prices fall.”

Fox-Clinch emphasised that affordability should still be considered prudently, especially given continuing uncertainty surrounding inflation and interest rates. However, despite those risks, she maintains the market has become substantially more accessible than public perception indicates.

She added: “The reality is the door to owning a home is open wider than it has been in nearly two decades.”

A new Nationwide deal has been awarded an “outstanding” rating by financial experts this week. The Moneyfactscompare.co.uk Pick of the Week showcases the finest new products and rate changes to emerge in the consumer finance market.

Personal Finance Analyst Caitlyn Eastell has assessed the following deals, along with their associated benefits. In terms of mortgages, a Nationwide product was brought to the fore — specifically its two-year fixed rate mortgage at a 95% loan-to-value.

Caitlyn said: “Nationwide Building Society has reduced a selection of its fixed rate mortgages by up to 0.36%. While the two-year option at 95% loan-to-value has seen a slightly smaller cut, it’s enough to enter the ‘Best Buy’ tables and is now priced at a competitive 5.42%.

“First-time buyers may also be pleased to note the generous incentive package, which includes a free valuation and £500 cashback. On top of this those with qualifying green properties could receive up to an additional £500.

“Borrowers have the option to make overpayments, which can reduce their overall term and underpayments are also permitted subject to approval and provided overpayments have been made. Overall, this product becomes a Moneyfacts Best Buy and earns an Outstanding Moneyfacts product rating.”

Caitlyn also examined a range of other financial products, including savings accounts, drawing attention to Kent Reliance’s one-year fixed rate bond — issue 31.

She said: “This week, Kent Reliance increased the rate on its range of Fixed Rate Bonds. The one-year option fares best and now pays an attractive 4.71% AER, which takes the market-leading position.

“Savers will need to deposit at least £1,000, but further additions are permitted for 14 days from account opening via a nominated account, which may add to its appeal. As well as paying interest on its anniversary, there is also a monthly interest option.

“Like many fixed bonds, earlier access is not permitted so savers should plan carefully and be comfortable locking away their cash for the full term. On assessment, the account earns an Excellent Moneyfacts product rating.”

The expert also turned her attention to buy-to-let mortgages, singling out NatWest’s five-year fixed rate mortgage at 60% loan-to-value.

Caitlyn said: “The latest change from NatWest sees it reduce its fixed rate offerings. One deal to see a small cut is the five-year fixed rate at 60% loan-to-value for house purchase customers. The deal now charges 4.83% until July 31, 2031, this may appeal to landlords looking to minimise costs as the already reasonable £995 product fee is offset by its free valuation incentive.

“However, this deal is only available online, which some may want to consider. When assessed as a whole, this product takes a prominent position as a Moneyfacts Best Buy and earns an Outstanding Moneyfacts product rating.”

The Virgin Money Dual Credit Card Mastercard was the final product to receive a mention.

Caitlyn said: “This week Virgin Money has increased the introductory 0% purchase and balance transfer terms to 20 months on its Dual credit card. This may appeal to borrowers looking to transfer existing balances and make purchases interest-free over a longer period, however, the credit card APR rises to 24.9% after this period which should be considered.

“The balance fee stands at just 2.95% and is one of the most competitive rates available. Customers can enjoy exclusive offers and rewards on the Virgin Red app, which enhances its overall appeal. In any case, borrowers should consider the terms of their credit card carefully to ensure it’s the best deal for them. Overall, the card earns an Excellent Moneyfacts product rating.”

A bank account switching deal offering customers £200 has been praised as ‘outstanding’ by leading financial product price comparison service Moneyfactscompare.co.uk, which highlighted the offer in its regular Pick of the Week rundown.

The NatWest Reward Current Account was singled out as one of the most attractive incentives currently on the market. Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “NatWest has added a new switching offer to its Reward and Select Accounts, offering customers an attractive £200 when they switch using the Current Account Switch Service (CASS). To be eligible, consumers must ensure they deposit at least £1,250 and log in to the mobile banking app within 60 days of switching.

“While the Reward Account charges a £2 monthly fee, this is offset by the opportunity to earn up to £5 in rewards per month. To avoid overpaying on their current account, consumers should ensure they make use of all the benefits. Overall, the account earns an Outstanding product rating.”

Moneyfactscompare also turned its attention to savers, recommending the Chip Smart Cash ISA as a top choice.

Caitlyn said: “This week, Chip has increased and added a boosted rate on its Chip Smart Cash ISA. The rise sees the account take the number one spot when compared to its peers and now pays an attractive 4.32% AER, however, this includes a 0.57% AER bonus for the first 12 months, so it’s important savers review once it expires.

“Adding to its appeal, Chip’s Smart Cash ISA has an underlying gross rate guaranteed to be equal to Bank Base Rate. While savers can invest as little as £1 and add to the account at any time, if they wish to close the account or transfer out before the first anniversary, they will not receive their interest payment, which should be considered.

“Investors have the choice between holding a fee-free subscription or paying a £4.99 fee per 28-days for a ChipX subscription which gives them wider or exclusive access to some features. The deal secures an Excellent Moneyfacts product rating.”

‘Outstanding’ mortgage deals this week

In the mortgage sector, the HSBC five-year fixed rate mortgage at 60% loan-to-value proved particularly noteworthy this week.

Caitlyn said: “The latest update from HSBC sees it reduce selected fixed rates by up to 0.13%. The five-year deal at 60% loan-to-value has seen a marginally smaller 0.12% cut, which solidifies its position as a ‘Best Buy’. Homemovers can now get the deal at a competitive 4.49% until 31 July 2031 and, further adding to its appeal, they can receive a free valuation incentive which offsets its £999 product fee. On assessment, this deal earns an Outstanding Moneyfacts product rating.”

Turning to the buy-to-let market, HSBC once again drew praise, on this occasion for its two-year fixed rate mortgage at 60% loan-to-value.

Caitlyn said: “Alongside reducing variable tracker rates, HSBC has also reduced selected fixed rates for landlords by up to 0.09%. The two-year option at 60% LTV for second-time buyers has seen a smaller cut and is now priced at 4.94%. Landlords looking to minimise upfront costs may be pleased to note the no payable fee and free valuation incentive.

“Overpayments are also permitted by up to a maximum 20%, which may be a bonus for some. The reduction strengthens its position as a Moneyfacts Best Buy and earns an Outstanding Moneyfacts Product Rating.”

All deals are subject to terms and conditions and should be fully examined for individual suitability before committing.