From today, Woolwich will cut 0.28% from three-year fixed rate mortgages, reducing the rate to 5.69% from 5.97% on mortgages with a loan-to-value of 60% or less and to 6.19% from 6.57% at 80% loan-to-value or less.

Cuts of up to 0.18% will be made to the range of five year fixed rate mortgages, now starting at 5.79%, and the longer term ten year fixed rates, now available at 5.69%.

Woolwich has also launched a new lifetime tracker at 1.19% above base – currently 6.19% – for mortgages up to 80% loan-to-value with a £995 fee.

Chris Keane, head of mortgage products for Barclays, said: “Funding costs for fixed rate mortgages are coming down and competition is hotting up so we have taken the opportunity to reassert our position as one of the most competitive lenders in the market place by cutting the cost of our fixed rate mortgages.”