Barclays launches new offset mortgage product
30 April 2026
Barclays has introduced a new offset mortgage at 0.15% lower than its standard offset product, available exclusively to Premier customers. Depending on how much a customer can offset over the course of their mortgage, they could save thousands of pounds in interest payments.
New product details
4.67% 2 Yr Premier Offset Tracker, £1749 product fee, up to 75% LTV, Min loan £5k, Max loan £2m
About offset mortgages
Offset mortgages allow a customer to link their current and/or savings accounts to their mortgage and use the money held there to reduce the mortgage balance they are charged interest on. For example, if a customer has a mortgage balance of £100,000 and offsets £20,000 in savings, they will only be charged interest on £80,000.
Any savings or current account a customer chooses to link to an offset mortgage will not earn interest, but the more that is held, the more mortgage interest is saved.
Advantages of a Barclays offset mortgage
- Lower monthly payments: Customers can lower monthly payments by requesting Barclays use the interest they save to reduce monthly payments over the term.
- Reduce the mortgage term: Customers can cut the length of their mortgage by using any interest savings against their mortgage balance.
- Effective interest at the mortgage rate: Customers effectively get interest on their savings at the full mortgage rate, which is typically higher than a savings account offers. For example, if a mortgage rate is 4.67%, any linked savings and current account balances would be offsetting the mortgage interest at that rate.
- Tax efficiency: As no interest is earned on any linked current and savings accounts, there is no tax to pay on savings interest received. This could be particularly efficient for higher rate tax payers.
- Flexibility: Barclays calculates interest daily and anything put in a Barclays linked savings or current accounts reduces the interest charged on an offset mortgage the following month. This also means that any linked account is instantly accessible, so customers can withdraw money whenever they like.
- Easy overpayment options and no early repayment charge: Customers have the flexibility to make overpayments and there is no early repayment charge on the Premier offset mortgage.
About Barclays Premier
Barclays Premier customers enjoy several perks, including Apple TV+, cashback rewards, enhanced savings rates, dedicated financial guides and more.
To qualify for Premier, customers need to have a current account with Barclays and either pay in a gross annual income of £75,000, or have at least £100,000 in savings, in eligible investments or a mix of both with the bank. For more information, please visit: https://www.barclays.co.uk/premier-banking/
