Barclays will tomorrow launch a new range of deals that are only available to customers that already hold an existing Barclays current account. The mortgage products can offer rates as much as 0.54% below that of the corresponding deal in the core range.
The aim is to reward existing account holders so, in order to qualify, borrowers must have held an account for at least three months and have credited at least £800 in each of those three months.
Barclays is the latest to offer incentivised mortgage deals to current account holders and the likes of Santander and Co-operative Bank also have similar offers.
Offering a better deal to existing customers makes a refreshing change and it’s good to see lenders rewarding loyalty. On the other hand some lenders will offer lower mortgage rates as a way to sell an additional current account or contingent on taking an account with a monthly fee.
Ultimately, it is always important to scrutinise any existing customer deal to make sure that it really is the best deal. Other lenders may still be able to trump the rate without any requirements surrounding the borrower’s banking arrangements.