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Barclays launches loyalty mortgage discounts

26th August 2010 Print

Barclays customers can get better mortgage deals from Wednesday 1 September as the bank launches its first loyalty mortgages.

Barclays current account customers will be rewarded with a reduction of up to 0.54 percentage points off selected tracker, fixed rate and offset mortgages. Customers with any of Barclays current accounts, including Premier, Additions and Graduate accounts, can all be eligible for the special rates.

Deals will available include a two year fixed rate mortgage at 2.95 per cent for deals up to 70 per cent loan to value - 0.54 percentage points below the standard offer and lower than the current best fixed rate from HSBC. For mortgages up to 80 per cent loan to value the rate is 4.19 per cent - a discount of 0.19 percentage points.

Discounts like this could save Barclays customers £922 in the first two years of their mortgage alone, 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. 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 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.