Barclays is cutting purchase rates by up to 37 basis points tomorrow, but withdrawing its best buy two-year tracker at 3.96%.

The lender is making substantial reductions on a large number of products for residential purchase.

Among the highlights, a three-year fixed at 75% LTV product with £899 fee is dropping by 37bps from 5.05% to 4.68%.

A Springboard five-year fixed 100% LTV product with no fee is being cut by 35bps from 5.54% to 5.19%, while the 95% option is falling by 33bps to 4.99%.

Lots of other deals are also reducing by 20-30bps.

Trinity Financial product and communications manager Aaron Strutt says: “Barclays is lowering the price of its mortgage rates so they are much closer to Nationwide’s best buy deals.

“The bank will have a 4.3% two-year fix (down from 4.39%) and a decent 4.43% five-year fix.

“Barclays has lowered its best five-year fix by 33bps (it was 4.76%) which means there is a decent saving for anyone planning to take this rate soon.

“The bank has also reduced many of the rates for those with smaller deposits.

“It is worth remembering borrowers with a mortgage offer through Barclays can swap to the cheap rate before they exchange contracts providing there is enough time to get the paperwork updated.

“Barclays is also pulling its best buy 3.96% two-year tracker rate which no doubt has been incredibly popular.

“Halifax still has its 3.96% two-year tracker, with a £1,499 fee and 40% deposit required.”