Is it worth opening a Barclays Premier account for a mortgage?

by Aaron Strutt

Sep 10 2024

Being a Barclays Premier customer offers several benefits, such as securing more competitively priced mortgages and more flexible overpayment options.

Barclays Premier is a premium banking service with enhanced banking features, including mortgage-related perks. A Premier account can usually be opened before or after a mortgage application is submitted via a broker like Trinity Financial. 

To qualify, applicants must have a gross annual income of at least £75,000 or at least £100,000 in savings with Barclays or Barclays UK investments—or a mix of both. Higher-earning clients can also access the bank's most generous mortgage affordability calculations and raise to 5.5 times single or joining salaries.

Here are some key benefits you can expect:

1. Lower or Exclusive Mortgage Rates

• Premier-only mortgage rates: As a Barclays Premier customer, you are likely to have access to slightly cheaper mortgage rates and sometimes lower arrangement fees. The bank consistently offers preferential mortgage rates lower than standard Barclays rates, which can reduce your monthly mortgage payments and overall interest costs. Sometimes, Barclays offer specific rates, like three-year fixes, to Premier customers.  

2. New: More Generous Overpayment Facility 

• Favourable mortgage overpayment terms: Barclays recently increased the amount  Premier customers can overpay on their mortgage from the standard cap of 10% to 25% each year. Many of our clients are keen to make overpayments, so this is a real benefit, considering most lenders allow borrowers to overpay 10% annually unless they take a tracker rate mortgage without early repayment charges.

3. Faster Mortgage Application Process

• Priority processing: Barclays Premier customers may receive faster mortgage application processing times when they apply directly. However, they may have to wait sometime to book a mortgage appointment. 
• Barclays has a mixed reputation when it comes to issuing mortgage offers. The mortgage offer can be produced quickly if applicants have straightforward finances and a clear credit history. For example, Trinity Financial's broker recently secured a mortgage in a day. However, approval time can be significantly delayed if an application is picked up for review or picked up by the KYC team.

4. Access to Higher Borrowing Limits

• Larger mortgage options: As a Barclays Premier customer, you may be considered for higher borrowing limits, especially if your income or assets meet the Premier banking requirements (e.g., £75,000 annual income or £100,000 in savings/investments). Barclays has a range of mortgages available up to £10 million.

5. Flexible Mortgage Products

• Flexible repayment and offset options: Premier customers may have access to flexible mortgage products, such as offset mortgages or features that allow for overpayment or underpayment options without penalties.

6. Fee Reductions or Waivers

• Discounts on arrangement fees: Some Premier customers may benefit from reduced or waived mortgage arrangement fees, which can save hundreds of pounds on upfront costs. However, there may be alternative mortgage rates available with varying setup fees.

7. Wealth Management Integration

• Financial planning: Barclays Premier integrates wealth management and mortgage services, allowing you to align your mortgage with broader financial goals like savings, investments, and estate planning.

8. Access to Barclays Family Springboard Mortgage

• Family assistance: Premier customers may more easily qualify for products like the Family Springboard Mortgage, which allows family members to help support the mortgage deposit through savings. This is subject to mortgage affordability checks and the appropriate legal advice.

9. Access to Barclays Cashback rewards

New: Barclays has launched the option to earn up to 15% cashback at a range of popular retail, food, travel and leisure brands. Register for Barclays Cashback Rewards.

These perks can make the mortgage process smoother and more financially beneficial for Barclays Premier customers, offering both immediate and long-term advantages.

Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage