The move will see the bank’s existing two-year fixed deals at 60% and 70% LTV cut by 0.2% to 3.29% and 3.39% respectively.
Barclays will also introduce a two-year fix for 65% LTV at 2.99%, on loans over £500,000.
Two-year fixed deals at 80% LTV take a smaller cut, moving down 0.10% to 3.69%, while the Great Escape remortgage package is cut from 3.89% to 3.74%.
There are also changes to the three-year fixed NewBuy package with rates moving from 6.09% to 5.89% and the application fee halved to £499.
This move follows Nationwide’s recent decision to cut two-year fixed rate mortgages and arrives after news that UK mortgage lending has fallen to its lowest level in 12 months.
Lea Karasavvas, managing director at Prolific Mortgage Finance, said that Barclays’ announcement was a welcome boost to the sector.
“At a time where the threat of a eurozone crisis has impacted variable rates, it is encouraging to see Barclays following Nationwide and other lenders in cutting fixed rates.”
