Overview
- Barclays and NatWest announced mortgage rate reductions that take effect Friday, May 29, with Barclays trimming some deals by up to 0.43% and NatWest by up to 0.54%.
- Market participants say the cuts are driven by falls in swap rates, which banks use to set fixed mortgage pricing over two, five and ten years.
- Reports that US and Iranian negotiators reached a 60-day memorandum of understanding were cited by lenders and brokers as easing immediate geopolitical and energy-price fears, but the report remains unconfirmed by all parties.
- Mortgage brokers urged borrowers to lock in new deals quickly because earlier this year lenders removed offers and shortened product lifespans during sharp market volatility, and the repricing could reverse if tensions rise again.
- Economists say a sustained pause in regional hostilities would shift expectations toward Bank of England rate cuts next year, which could further lower mortgage costs if the calmer conditions hold.