Barclays bank has announced it will lower the terms of its three-year fixed rate Help to Buy mortgage.
The product’s tariff will be reduced to 3.49 per cent and the £299 application fee for borrowers will be removed.
Barclays also announced it will introduce a new five-year fixed rate mortgage at 4.89 per cent, which is expected to be popular among consumers looking for a bargain.
The bank’s NewBuy three-year product also received a rate cut from 4.75 per cent to 4.49 per cent.
Andy Gray, managing director of mortgages for Barclays, said: “It’s great that we can continue to make rate cuts to our mortgage range, giving borrowers access to even better deals.”
He added the bank knows people are struggling to save for deposits and get on to the housing ladder and he hopes these reductions will help first-time homeowners.
Among the main consumers of mortgage products are landlords looking for buy-to-let deals and Mr Gray said the lower rates would offer better choice for those looking to increase their portfolios.