Barclays’ customers get 0.54% rate cuts

Barclays is launching its loyalty mortgage discounts of up to 0.54% on September 2.

Current account customers, with a minimum of £800 credited in each of the previous three month prior to when they apply for a mortgage, will be rewarded with cuts on selected tracker, fixed rate and offset mortgages.

Deals available include a two year fixed rate mortgage at 2.95% up to 70% LTV – a cut of 0.54%.

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

Discounts like this 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, says: “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.”