Barclays offers a 'great mortgage escape'

As part of the move, which it has dubbed The Great Escape, it is offering people who remortgage to it a lifetime tracker of 2.18 per

cent above the base rate, giving a current rate of 2.68 per cent.

There is also no application fee for the loan, as well as a free valuation and legal work and 300 cashback to cover any exit fee borrowers have to pay to their existing lender.

The deal is aimed at the estimated 700,000 mortgage customers who are currently sitting on their lenders' standard variable rate, the rate people revert to when their existing deal comes to an end.

Barclays said many of these people were likely to be aware that they could switch to a lower rate with another group, but were put off doing so by the costs involved.

But borrowers will need to have at least 30 per cent equity in their property in order to take advantage of the offer, which will be available from tomorrow.

The rate is slightly higher than the current best buy for a lifetime tracker of 2.19 per cent from HSBC, although this is only available to people borrowing 60 per cent or less of their property's value.

It is broadly in line with the second most competitive deal on the market of 2.65 per cent from ING Direct, for people with 25 per cent equity, which comes with fees of 945.

Barclays estimates that a borrower with a 150,000 mortgage who was on an SVR of 3.5 per cent could save around 60 a month or 700 a year by taking advantage of the offer, the savings rise to 1,200 a year if they are currently charged interest of 4 per cent.

Borrowers who take out the deal will also benefit from the group's Switch & Fix offer, under which they can move from a tracker mortgage to a fixed rate one at any time without incurring any early redemption charges.

Andy Gray, head of mortgages at Barclays, said: "We have built this package specifically to help the 700,000 families who feel trapped on their current lender's SVR."