Woolwich cuts fixed rate mortgages

Wednesday, 19 September 2007 12:00

Woolwich is cutting some of its fixed rate mortgages by as much as 0.5 per cent and maintaining rates on tracker mortgages.

From September 25th, Woolwich's five-year fix will be cut by 0.5 per cent and will be available from 5.59 per cent.

The lender's two-year deal is to be cut by 0.3 per cent and will also be available from 5.59 per cent.

Woolwich's tracker mortgages - including the Lifetime Tracker at 0.17 per cent above base - will stick at their current rate.

Andy Gray, head of mortgages at Woolwich, said: "We are moving towards a situation for borrowers where Woolwich is now able to offer product pricing which few in the market can match.

"It is almost unprecedented to be able to offer two, five and ten-year fixed rates at exactly the same rate. It also means that borrowers who are on very competitive two-year deals that finish this autumn are going to see a much lower increase in their mortgage payments than they might have feared a month ago."

Last week Woolwich launched a ten-year fix also at 5.59 per cent.

"We have already seen a lot of interest in the ten year fix we launched last week, and we are prepared for a bigger rush as our new range is released," Mr Gray said.

The two and five-year fixed rate mortgages have arrangement fees of £995, available up to loan-to-value of 80 per cent and early repayment fees are at three per cent during the fixed rate period.

Overpayment of ten per cent a year is allowed without charges. After the fixed rate term the deals reverts to 0.95 per cent above base rate.

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