Bank offers “loyalty mortgages”
Discounts on mortgage products for current accountholders
Barclays is launching a new range of products called “Barclays Loyalty Mortgages” which will make all Barclays current accountholder eligible for the special rates.
To qualify for the mortgages customers must have had their current account with Barclays for three months and pay a minimum of £800 each month into the account.
The new mortgage range will give holders of current accounts (including Premier, Additions and Graduate), discounts of up to 0.54% off selected mortgages. This includes a two-year tracker mortgage at 2.79% (bank base rate plus 2.29%), or a two-year fixed-rate at 2.95%.
Offset mortgages and lifetime trackers will also be offered as part of the mortgage range.
Andy Gray, head of mortgages for Barclays, commented: “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. Our current account customers will now always have access to discounted rates in our range, as a reward from us to them for their loyalty.”
Barclays is following the example of other banks such as UK rival Halifax which launched a ‘Rewards’ range for current accountholders in January.
The rewards are available to any Halifax customer that funds their current account with £1,000 or more each month or holds an Ultimate Reward Current Account. It gives customers access to a number of exclusive product deals including:
• Savings – An extra 0.2% on a wide range of variable rate savings products for 1 year
• Mortgages– At least 0.2% reduction on the interest rate charged on their mortgage deal
• Credit cards – An extra 3 months at 0% on purchases on the Halifax All in One Card