The bank is in the process of contacting customers to inform them of changes which will see the ‘rebalancing’ option removed from its standard mortgage products. This had allowed customers to borrow back money which they had already repaid.
Barclays said that the move will affect almost a million customers across its fixed, tracker and offset range.
But a spokesperson for the lender told Mortgage Solutions that only ‘a small proportion’ of its customers made use of the facility and that ‘most customers don’t know it exists’.
A second change has seen customers who have access to a mortgage overdraft have the facility reduced. The bank said it withdrew this option for new customers in December.
Customers are being given 60 days’ notice of the move and the bank said the changes were being made with responsible lending in mind.
“We regularly review our products but have no plans for further changes to our range,” the spokesperson added.
