Barclays is also introducing a new product – a 3-year stepped fixed rate at 85% LTV starting at 3.09% for the first year, reducing to 2.99% and 2.89% in years two and three respectively.
Andy Gray, managing director of mortgages for Barclays, said: “We are giving homebuyers one of the best fee-free mortgages on the high street, the security of fixing their rate at a competitive 1.85% and zero application fees.
“Our extremely competitive 2 and 5-year deals are significantly lower than the average market SVR rate of 4.4% and will have strong appeal to those homeowners who have between 35-40% equity in their property and are currently sitting on their lenders standard variable rate (SVR) to fix their monthly mortgage payments.
“New homeowners, or those looking to take their next step on the property ladder, can select a 3-year term stepped fixed at 3.09% for the first year with reducing rates in years two and three. Over the 3-year term, the average rate of 2.99% will help customers to save £268 compared to an initial fixed term rate of 3.09%.”