The lender will reduce its two-year Great Escape deal from 3.49% to 3.29%, available up to 70% LTV. The product continues to be available fee-free, with free legal work, valuations and £300 cashback also available to customers switching to Barclays.

These rate reductions follow similar changes at the start of September, Barclays now says that a homeowner switching from a competitor’s Standard Variable Rate (SVR) of 4.74% would save £2,800 over the two-year term.

The bank has also reduced its two-year fixed rate mortgages, with a 60% LTV deal available at 2.69% and a 70% LTV product on offer at 2.89%. Both mortgages have been cut by 0.20%. Application fees for both products are £999 for standard customers and £499 for customers who meet Barclays’ loyalty requirements.

Andy Gray, head of mortgages at Barclays, said:

“We know that an increase in competitor SVRs will put extra burden on consumers who are already squeezed due to other household costs rising.

“The good news is that fixed rates are near historic lows, so many of these customers stand to gain from remortgaging to a new product.

“These new deals are about showing borrowers who are impacted by higher rates that there are other options to move to a cheaper fixed rate elsewhere and as a result we are expecting these deals launched today to prove very popular.”