A major high street bank is cutting mortgage rates across its range. 

From tomorrow, Barclays will be reducing its rates by as much as 0.48 percentage points for home buyers.

The changes will include a market leading five-year fix for those buying with at least a 40 per cent deposit.

It has a rate of 3.96 per cent, meaning that on a £200,000 mortgage being repaid over 25 years they would pay £1,051 a month.

However, it does come with a catch as home buyers will only be eligible if their property is highly energy efficient.  

Green Home mortgages: Barclays customers who are buying an energy-efficient new-build home directly from the builder or developer can secure preferential rates

The 3.96 per cent ‘green deal,’ which comes with an £899 fee, is available to people buying a new-build home directly from the builder or developer. 

It must have an Energy Performance Certificate rating of A or B.

The lower priced ‘green’ options are also available to those buying with smaller deposits.

For example, someone buying with a 10 per cent deposit can fix for five years at 5.52 per cent from tomorrow – also a best buy.

Barclays’ changes will also benefit those buying homes that don’t meet its green criteria.

From tomorrow, Barclays will be offering the lowest standard two-year fix on the market for those buying with a 15 per cent deposit.

Its rate will be dropping from 4.65 per cent to 4.49 per cent with a £899 fee attached.

For those able to buy with a 25 per cent deposit, Barclays’ lowest rate will fall to 4.19 per cent from tomorrow, with an £899 fee.

The next lowest rate after that is offered by First Direct at 4.24 per cent, albeit with a lower £490 fee. 

The bank is also increasing the maximum loan amount available for those buying with 10 per cent deposits for both houses and flats.

The maximum mortgage for houses has increased from £570,000 to £640,000, while the cap for flats has increased from £275,000 to £310,000. 

Barclays will also be offering a two-year fix at 4.93 per cent rate for those buying with a 10 per cent deposit. This is just shy of Virgin Money’s 4.87 per cent deal with a £995 fee.

Those fixing for five years with a 10 per cent deposit can secure a rate of 4.62 per cent – which matches Virgin Money’s best rate.

Sian McIntyre, managing director of mortgages and savings at Barclays, said: ‘With bills and costs rising, we know how challenging homebuyers are finding things right now. 

‘We’ve introduced several rate drops already this year across our mortgage range, making a real difference in affordability, and we’re delighted to announce more rate cuts. 

‘This includes bringing our green home mortgage even further below 4 per cent, making it the lowest five-year fixed rate available on the market.’