From today, Thursday 23 April, the lender will offer a two-year fix at a rate of 1.85% to all borrowers with a 40% deposit. The product is available fee-free.

The lender is also cutting a number of products across its range, including five-year fixes and two-year tracker deals. This includes a five-year fix at 2.69% for borrowers with a 25% deposit, subject to a £999 fee.

The lender is also introducing a three-year ‘stepped product’ which starts at a rate of 3.09%, reducing to 2.99% in the second year and 2.89% in the third year. This product will be available up to 85% loan-to-value.

New products range:

– 1.85% two-year fixed, 60% LTV (fee free)

– 2.59% five-year fixed, 70% LTV (£999 fee)

– 2.69% five-year fixed, 75% LTV (£999 fee)

– 1.34% two-year tracker, 60% LTV (£999 fee, follow on BBBR+1.99%)

Andy Gray, managing director of mortgages for Barclays, said: “We are giving homebuyers one of the best fee-free mortgages on the high street, the security of fixing their rate at a competitive 1.85% and zero application fees.

“Our extremely competitive 2 and 5 year deals are significantly lower than the average market SVR rate of 4.4% and will have strong appeal to those homeowners who have between 35-40% equity in their property and are currently sitting on their lenders standard variable rate to fix their monthly mortgage payments.

“New homeowners, or those looking to take their next step on the property ladder, can select a 3 year term Stepped Fixed at 3.09% for the first year with reducing rates in years 2 and 3. Over the 3 year term, the average rate of 2.99% will help customers to save £268 compared to an initial fixed term rate of 3.09%.”