Barclays are launching a new scheme that rewards their current account customers with special rate reductions on mortgages. Existing customers holding any Barclays current account – including Premier, Additions and Graduate accounts, will be eligible for discounted rates on a range of mortgages with Woolwich, Barclays’ mortgage brand.
To qualify, account holders must have had a minimum of £800 credited to their account in each of the three months prior to their mortgage application.
The discount offers up to a 0.54% reduction on selected tracker, fixed rate and offset mortgages. Meaning that Barclays current account customers can get a 2 Year Fixed Rate mortgage (70% Loan to Value) with a highly competitive initial rate of 2.95% – compared to the standard rate of 3.49% for non-eligible customers. This 2 year fixed rate would be followed by 2.99% (BBBR* +2.49%) variable for the remaining term. The overall cost for comparison is 3.1% APR. Early repayment charges apply during the fixed rate period.
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. What this new scheme means is that 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.
“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 special rate loyalty mortgage from Woolwich, Barclays current account holders must have had a minimum of £800 credited to their account in each of the three months prior to their mortgage application.
* BBBR = Barclays Bank Base Rate which is currently 0.50% (effective 6 March 2009)
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
To compare Barclays Loyalty Mortgages against the rest of the mortgage market please visit out mortgage comparison section here
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