Barclays Mortgages is launching a 1.28 per cent two-year fixed rate residential mortgage and cutting prices on many other options.
The 1.28 per cent product is available at 50 per cent LTV for purchase and remortgage.
The lender is also cutting rates across many other products.
The lender will also be introducing a 1.85 per cent five-year fixed option at 60 per cent LTV, reduced by 0.14 per cent.
The firm will also be selling a 2.18 per cent five-year fixed loan at 85 per cent LTV, cut by 0.11 per cent.
All the new purchase loans have a £999 fee and are available between £5,000 and £2m.
Barclays Mortgages director Craig Calder says: “We are really excited about the potential of the market in early 2018.”
Barclays is also reducing rates across several higher LTV purchase, remortgage and Help to Buy products.
Help To Buy
From Thursday the lender will be selling a 1.79 per cent two-year fixed rate at 75 per cent LTV.
Barclays will also be introducing a 2.37 per cent five-year fixed rate loan at 75 per cent LTV.
Both loans have no fee and are available between £25,000 and £450,000.
Barclays has also trimmed rates on its Reward range for existing customers.
The firm will soon launch a 1.28 per cent two-year fixed rate at 60 per cent LTV.
It has a £899 fee and is available between £5,000 and £2m.