'Real opportunity' for first-time buyers as three banks slash mortgage rates

Three major banks have announced a cut to their mortgage rates for 2026. Halifax, Barclays and HSBC have all confirmed they have cut rates this week, something that will benefit first time buyers and those re-mortgaging a property.

On Monday, January 5, HSBC announced it was reducing prices on residential and buy-to-let fixed-rate mortgages. Following suit was Barclays and Halifax who on Friday have made reductions to a range of their fixed mortgage rates. Barclays now offers a mortgage rate as low as 3.56% for its Premier customers who are moving home and have a deposit of at least 40%.

For people re-mortgaging with 25 per cent equity in their home, from today Barclays will be offering a two-year fix at 3.78 per cent, with a £999 product fee.  

This is the same as HSBC's 3.78 per cent deal, however HSBC has a fee of £1,008. Halifax has also said it will be lowering rates by up to 0.16 percentage points for home buyers from Friday.

Shaun Sturgess, director at Swansea-based Sturgess Mortgage Solutions, told the Newspage agency the cuts are a positive sign.

"These aren’t headline-grabbing cuts but lenders don’t move first unless they’re confident funding costs are easing and the wider outlook is improving," he said.

"My view is that this is the start, not the finish. I expect steady, gradual reductions through 2026 rather than sharp drops. For first-time buyers in south Wales, this opens real opportunity."