Woolwich cuts rates

The new mortgage rates represent a cut of 0.15% and include a 2 year fixed at 5.79%, a 3 year fixed at 5.54% and a 5 year fixed at 5.64%. The ten year fixed rates is 5.64% down only 0.05%. All these rates are available for a fee of £995 and at a loan to value of 60%, so it will be limlted to those with large deposits.

However for those with smaller deposits the Woolwich has introduced a new tier up to 75% loan to value, including a new 3 year fixed at 5.84%, and a new 2 year fixed at 5.99%.

Under Woolwich's Switch and Save Package, customers who are remortgaging will also have their legal and valuation fees covered by Woolwich and this is now available on products up to 85% LTV.

Changes to lifetime trackers include a product with no fee down from base +0.99% to base +0.94%. Our lifetime tracker with a £995 fee is down from base +0.69% to base +0.64%. All lifetime trackers now also come with a drop lock feature whereby customers can switch (or 'lock' into) a fixed rate at any time during the early repayment charge period. The minimum loan size for the fee free lifetime tracker mortgage, previously £100,000, has also been reduced to £50,000.

"With many commentators expecting base rates to come down, people are looking for good value trackers, and we have developed a "drop-lock" facility" said Andy Gray, Head of Mortgages for Woolwich. "It combines the best features of the tracker and fixed rate mortgage. With it, anyone taking a tracker with an early repayment charge will benefit from any base rate reductions, whilst having the flexibility to switch to a fixed rate to 'lock in' when the opportunity is right. Given the popularity of our tracker products with intermediaries, it's clearly a product that will benefit their customers, giving them a degree of control over their mortgage rate.