Woolwich fixed-rate mortgage demand move
Thursday, 17 Jan 2008 13:08
Woolwich is passing on rate cuts to borrowers with the launch of new "keenly priced" two, five and ten-year fixed-rate mortgages.
Its two-year fixed-rate mortgage has a rate of 5.89 per cent which includes an arrangement fee of £995 and a loan-to-value (LTV) of 80 per cent.
The deal, which reverts to a tracker rate of 0.95 per cent above the base rate after two years, has a three per cent early repayment charge (ERC). Borrowers can overpay up to ten per cent per year without charges during the fixed period.
Woolwich's five-year product has a rate of 5.69 per cent and reverts to the same tracker deal as its two-year counterpart after the fixed term expires. It has an LTV of 80 per cent, an arrangement fee of £995 and a three per cent ERC.
A rate of 5.59 per cent applies to the ten-year fixed-rate mortgage. Terms are similar to the two and five-year products but it has a six per cent ERC and borrowers can overpay up to five per cent per year without charges during the fixed-rate period.
Andy Gray, head of mortgages at Woolwich said: "The overall economic outlook means there are still inflationary pressures in the UK economy and therefore, although the overall trend is interest rates is down, there is a little more uncertainty as to how quickly they will fall.
"We therefore think over the next few weeks there will be an increase in demand for fixed rates over trackers, especially for those that are competitively priced."