Barclays cuts rates by up to 66bps but Nationwide raises fixes as swaps climb back above 4%
Barclays cut selected residential rates by up to 0.66% from 16 July, but Nationwide went the other way, raising some fixed and tracker deals by up to 0.35% and lifting its two-year fix from 4.19% to 4.54%. The driver is funding costs: two- and five-year swap rates briefly dipped below 4% in early July but have climbed back to around 4.18-4.26% as renewed Middle East tensions unsettle markets, and lenders price off swaps. For buyers, the wave of cuts seen earlier this month has stalled and brokers are advising securing a rate rather than waiting for further falls; for sellers, affordability has stopped improving week on week. This is marginal repricing, not a Bank Rate move - fixes remain well below last year's levels and could ease again if swaps settle.
What this means for…
Buyers· 2/3
Sellers· 2/3
Wider market· 2/3
Each axis scored 1 (minor) to 3 (major). Total 6/9.
More Rates commentary
1 Sept 2026 · Impact 5/9
HSBC cuts fixed mortgage rates by up to 0.11% as lenders keep trimming into September
1 Sept 2026 · Impact 5/9
More than one million homeowners come off two-year fixes this year, facing £283 a month more on standard variable rates
21 Aug 2026 · Impact 6/9
Halifax cuts fixed mortgage rates from 24 August, with 60% LTV remortgage deals down 0.13%
Related reading
Thinking about your own move?
See what your home is worth with free, side-by-side valuations from competing local agents. Your details stay private until you choose one.
Get your free valuations →