Barclays Premier - Mortgage Interest Rate Saving - Worth it?

mither_2

Hello,
I have a mortgage AIP and unless something goes wrong with the house purchase it will hopefully go through i the next 2-4 months. 
c£450k mortgage 
5 year fixed rate
Interest rate/fee offered:
1.70%/£999 (to be added to the loan)
BUT if I were a Barclays Premier customer the terms would be
1.62%/£784.
I meet their criteria to take out the account and the extra 9.8% saving would be helpful. 
I currently have the Santander123 account as my main account but the benefit of having this has come down substantially now as the interest rate is 0.6% and there is £5/month charge. My bills are relatively small and so I get minimal cashback. 
Looking at what the Barclays Premier account offers I don't need an overdraft and it doesn't specify what the interest rate will be in it pays any at all? 
The only obvious benefit is the interest rate saving? Are here any others that aren't listed?
I would need to have my salary paid into the account but there's nothing to say it would need to stay there? I could move it into other accs paying higher interest rates?
Any thoughts on this please? 

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As a Premier customer, you can apply for exclusive Premier mortgages, loans and savings accounts.

 

colsten

Even though it doesn't pay interest, a Barclays Premier account seems a no brainer if you get the better mortgage rate. You can also register for Blue Rewards, which should give you a monthly £7 + £5 - £4 = £8. That is probably more than you can net in cashback and interest in your 123. Which, btw, you should have ditched some time ago / swapped into a 123 Lite. 

You could 'park' your cash savings in a Virgin Money Current account (2% var on up to £1,000), and its attached savings account (0.5% var), and send them to Barclays by FP as and when you need the money.

jonesMUFCforever

Is there any term which states you have to have the Barclays Premier account for the whole of the fixed term or could you change the account after you complete?

getmore4less

0.08% on £450k is £30pm saving at the start. 
What are te requirement to keep the account open?

You can still keep other accounts. 

getmore4less

A quick look at the latest rate sheets(2 Dec) I don't see a 1.7% purchase rate. There is a 1.7% remortgage rate

There is a Premier 75% 7y fix at 1.62% with £749 fee

born_again

I would check with Barclays if you could switch over now to Premier acc and would the better offer be applicable.

mither_2

Having checked again I can see that i made an error when looking at the comparison sites. Thanks "More4less" for pointing that one out. 
The 1.62% isn't available for 5 year terms, only for 7 years. 
The 7 years has an interest rate saving of 0.8% but the early repayment charge is 5% rather than 3% which goes against it.
This thread has got me thinking that I should change away from the Santander 123 account. 
I meet the requirements for the Barclays Premier account but it doesn't sound that great to me without the mortgage rate saving as it pays no interest (even the Premier exclusive only pays 0.45% apparently and I'd have to lock cash up for 1-2 years) and so I should shop around for another account. 
Does anyone have any recommendations?