The bank is withdrawing its two-year fixed mortgage at 4.75% and its five-year fixed deal at 4.93%, meaning options for products with interest rates of less than 5% are disappearing quickly.
According to mortgage expert Aaron Strout, although these deals had not been on the market for long, the fact that they were less than 5% would have made them “incredibly popular” in the current era of rising mortgage rates.
“The move puts pressure on lenders such as NatWest and Nationwide, with some remaining lenders offering fixed interest rates below 5%,” warned Strutt, who is director of products and communications at Trinity Financial.
He added: “NatWest has a five-year fixed rate of 4.98%, and Nationwide has a two-year fixed rate of 4.93% and 4.89% five-year fixed rates.
“Unless there is better global news especially regarding inflation and the war between Iran and America, it does not look like interest rates will fall for a while, but the market could change quickly.
“Right now, if you want a fixed interest rate of less than 5%, you’re going to have to be quick because there probably won’t be anything left soon.”
This reflects advice given by brokers across the UK since lenders started raising mortgage interest rates in early September.
The average new mortgage rate recorded on Friday, September 25 was 5.83% compared to 5.55% a month ago, on August 25, 2026.
This is due to lenders raising fixed-rate mortgage rates in response to concerns about inflationary pressures resulting from events in the Middle East.
As such, mortgage brokers are advising anyone with a mortgage due to expire within the next six months to consider concluding their next deal as soon as possible.
Speaking to Newpage, Darius Karpowicz, director of Doncaster-based Albion Financial Advice, said: “Barclays rarely moves alone. When a lender that holds the market-leading rate of 4.75% for two years pulls it, others tend to follow within days, and a pool of less than 5% is already shallow. If you’re in the middle of a call or looking for an interest rate, lock in now.”
“Most lenders allow you to transfer if something better comes along later, so there is little downside to securing early and a lot of risk in waiting two weeks.
“The deals are still out there, but they are disappearing faster than most borrowers can get their paper together.”
