Will barclays mortgage rate cuts continue through 2026?

Small reductions are possible if swap rates stay low and competition remains strong. Expect step-by-step moves rather than large cuts. Banks will watch funding costs, arrears, and demand before pricing. If markets reverse, lenders can pause or tweak fees instead. Start quotes early and be ready to switch if pricing improves.

How do Halifax mortgage rates compare to others now?

Halifax mortgage rates are competitive at lower loan-to-value bands, often near the best five-year fixes. Exact pricing depends on LTV, loan size, fees, and incentives. For small loans, no-fee options can beat headline rates with big fees. Always compare the total cost over your fixed period, not just the rate.

What does the UK mortgage price war mean for house prices?

Lower fixed rates support activity and approvals, which can stabilise prices. Any gains are likely to be gradual because affordability tests still limit maximum borrowing. Regional trends will vary. Sellers may gain confidence, but buyers remain cost sensitive. Market depth should improve first, with pricing changes coming later if demand holds.

Did HSBC rate cuts start this year’s move lower?

Yes. HSBC rate cuts were the first among big UK lenders in early January 2026, prompting rivals to adjust. This set a new reference point for pricing. Subsequent barclays mortgage rate cuts and Halifax changes widened the competition, creating more choice for borrowers at lower LTVs.

Global Market Insights

January 10: UK Mortgage Price War as Barclays, Halifax Cut Rates

ByHuzaifa Zahoor January 10, 2026January 10, 2026

Barclays mortgage rate cuts are accelerating a UK mortgage price war, with Halifax following and headline fixed deals near about 3.55%. That is the lowest level since 2022 after the Bank of England’s December rate cut. Cheaper swap rates and stronger competition suggest more small reductions could come. This eases pressure on the 1.8 million borrowers due to refinance in 2026, supports housing activity at lower loan-to-value levels, and narrows bank margins. We explain what has changed, who benefits now, and how to act if your fixed term ends this year.