Barclays has announced that it is cutting the cost of its lowest rates available through mortgage arm Woolwich.

 Woolwich mortgages will see a rate reduction of up to 0.34 per cent on a range of products, all of which have a loan to value of up to 70 per cent.

The loyalty lifetime tracker mortgage, available to existing current account customers, has been cut to 2.48 per cent, while a rate of 2.99 per cent is available to non-Barclays customers.

Offset tracker mortgages for existing customers have also been cut, with a new rate of 2.79.

Reductions in the cost of Woolwich fixed rate mortgages include its five year fixed rate being cut by 0.15 per cent to 4.29 for existing customers, or a standard rate of 4.49 per cent.

The cheapest two year fixed rate mortgage for customers who do not already bank with Barclays has been cut to 3.15 per cent.

Commenting on the rate cuts, Andy Gray, head of Barclays mortgages, said: “What we are seeing as we approach the final quarter of the year is a positive healthcheck for the mortgage market. Rates are competitive and Barclays is very much open for business and looking to lend.”

In addition to the lower rates, Barclays is still offering a ‘drop-lock’ facility to its new tracker and offset mortgage customers, whereby they can choose a tracker rate now, and switch to a fixed rate in the future, without incurring early repayment charges.

To qualify for the range of Barclays loyalty mortgage rates, customers need to have held a Barclays current account and deposited a minimum of £800 for the previous three months before making their application.

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