The key reductions across the 80 per cent LTV range include a cut of 0.21 per centage points on a two year fixed from 4.59 per cent to 4.38 per cent, 0.10 per centage points reduction on the three and five year fixed rates (three year 4.89 per cent to 4.79 per cent and five year 5.49 per cent to 5.39 per cent).
At the same time a lifetime tracker at 80 per cent LTV is being introduced at base plus 3.38 per cent with a £999 application fee.
The drop lock facility will be available to all new tracker and offset borrowers with Barclays. It will allow people who opt for a tracker or offset mortgages to switch to a fixed rate in the future without incurring an early repayment charge.
Andy Gray, head of mortgages for Barclays, said: “With speculation this week that UK interest rates are set to stay at record lows until 2014, the drop lock facility provides customers with peace of mind that they can go into a low tracker rate now and switch at a point in the future when they need greater security.”
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