The mortgage rate war – which has already been offering some of the cheapest deals ever seen – takes a new turn today with the launch of the UK’s cheapest-ever ten-year fix.

The product, from Barclays, gives borrowers the chance to fix their repayments at 2.99%. The deal has been slashed from 3.45%.

It is available on 60% loan to value mortgages.

Comparison website Moneyfacts says it is the lowest ten-year fix on record.

Barclays managing director for mortgages Andy Gray said: “We are confident our rates will be extremely appealing.”

Broker Aaron Strutt said: “This is a fantastic rate. A lot of borrowers feel that fixing their payments for ten years is a bit too long, but at a rate of 2.99% this could certainly change things.”

The 2.99% rate may be the cheapest ever seen on a ten-year fix, but compares with HSBC’s 1.29% rate on a two-year fix on a 60% LTV mortgage.

Broker David Hollingworth, of London & Country, said: “Lenders have got off to a great start this new year. There is an exciting range of deals of all different combinations of low rates, small fees, no fees and freebies.”