Mortgage discount for Barclays customers

The new loyalty mortgages will see any Barclays current account customers rewarded with a reduction off selected tracker, fixed rate and offset mortgages.

Deals available include a 2-year fixed rate mortgage at 2.95% for deals up to 70% loan to value – 0.54% below the standard offer and lower than the current best fixed rate from HSBC.

For mortgages up to 80% loan to value the rate is 4.19% – a discount of 0.19%.

The discounts could save Barclays customers £922 in the first two years of their mortgage, based on an average mortgage advance of £135,000. For larger mortgages, for example a £500,000 advance, the savings could top £3,400.

Andy Gray, head of mortgages for Barclays, said: “We are always looking at how we can offer the most competitive mortgage rates we can and the most deserving people for these are our existing customers.

“These loyalty rates supplement the competitive mortgage deals available to new and existing customers from our standard range. They also build on the drop-lock facility we launched last month which gives new tracker and offset customers the flexibility of a low tracker rate now and the option to switch to a fixed rate in the future when they need greater security, without incurring an early repayment charge.”

To qualify for a loyalty mortgage, customers need to have been an existing Barclays current account customer with a minimum of £800 credited in each of the last three months, at the time they apply for a mortgage.