Woolwich has cut the rate on its Perfect 10 mortgage by 1.2 per cent, from 4.99 per cent to 3.79 per cent.
The mortgage, which requires a 10 per cent dent deposit and is available only for purchasing new build properties from Bovis Homes, is a two-year fixed rate with an arrangement fee of £999.
After two years the rate reverts to a lifetime tracker at base rate plus 2.99 per cent.
The deal also gives buyers three year unemployment protection insurance from the date of the exchange and £500 towards legal fees.
Barclays head of mortgages Andy Gray says: “Slashing the rate enables more buyers to purchase a new home with just a 10 per cent deposit at one of the most affordable rates since the recession.
“The deal also gives a measure of protection for customers, Barclays and Bovis Homes and is testament to our commitment to get lending at 90 per cent levels on the right track but in a way which is sustainable in the long term.”