Barclays has added an offset mortgage to its Premier range, priced 0.15% lower than the standard options.
The two-year tracker is priced at 4.67% with a £1,749 fee and is available up to 75% loan to value (LTV) on borrowing between £5,000 and £2m.
Barclays said the product could save borrowers thousands of pounds in interest payments, depending on how much was saved over the course of the mortgage.
Offset mortgages allow borrowers to link their current or savings accounts to their mortgage and use the money saved to reduce the mortgage balance they are charged interest on. For example, a borrower with a mortgage balance of £100,000 who offsets £20,000 in savings will only be charged interest on the £80,000.
Current or savings accounts linked to an offset mortgage will not earn interest and customers can still access their money.
Barclays’ Premier range is open to borrowers who have a current account with Barclays and pay in either a gross annual income of £75,000 or have at least £100,000 in savings, eligible investments or a mix of both with the bank.
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The product launch comes after Barclays introduced a mortgage priced below 4%, also for Premier borrowers.
