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.”