Barclays has cut the rates on a range of mortgages for first-time buyers and borrowers with small deposits. The bank is reducing the interest rate on its 90% LTV fixed deals with two and five-year terms, to 3.99% and 4.79% respectively.

For borrowers with slightly larger deposits of 15%, Barclays has launched a five-year fixed mortgage with a rate of 3.99%. The lender is also cutting the rate on its 80% LTV ‘further advance’ lifetime tracker, by 0.50% and its large loan lifetime tracker by 0.76%, setting the rate for both at 3.99%.

Barclays report that the 3.99% rate, which is based on the bank rate plus 3.49%, offers ‘much better value’ for borrowers over the long term than the typical standard variable rate of 4.40%.

In another move, Virgin Money has reduced the rates across a range of residential and buy-to-let mortgages. The lender has improved the terms on its two and five-year fixed-rate BTL mortgages by 0.80% and 0.50% respectively, and its two-year buy-to-let tracker by 0.40%.