Launching tomorrow, the product is available through brokers and the branch network and targeted at an estimated 700,000 potential remortgagors put off by the costs involved in switching deals.

The tracker loan is offered at 70% Loan-to-Value at 2.18% over base rate, or 2.68% with no application fee, free legal work and valuation as well as £300 cash back toward any exit fees.

The lender is also offering its “Switch & Fix” tool – available on all Woolwich tracker products – enabling borrowers to switch to a Woolwich fixed rate mortgage without early repayment charges.

Andy Gray, head of mortgages for Barclays, said: “We know many of the barriers that stop people remortgaging are simply down to cost.”

He added: “With many SVRs at 3.5 per cent or more, customers could save £60 per month or over £700 annually on a £150,000 repayment mortgage. If their SVR is 4 per cent they will save over £1,200 annually.

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“While base rate remains at 0.50 per cent, anybody delaying the decision to ditch SVR is paying more than they need to. With this new offer they retain the flexibility to switch to a fixed rate at any time should their expectations about base rate change, making this one of the most competitive packages on offer today.”

Barclays hit a milestone earlier this month when mortgage lending hit £100bn.