The mortgage will track 0.19 per cent above Bank Base Rate, with a current rate of 4.94 per cent and the product has no arrangement fees, redemption penalties or tie ins.
Andy Gray, head of mortgages for Woolwich, said: “Money markets have pushed the cost of short term fixed rates above 5 per cent so it is making them uncompetitive compared to tracker deals. We expect base rates to peak at 5 per cent by the end of this year, so tracker deals will still continue to offer better value over the longer term. Those borrowers who are nervous about interest rates movements should opt for our latest long term deal a competitive fixed rate of 4.98 per cent for 10 years.”
Key product details for the 0.19 per cent lifetime tracker:
Customers switching from another lender can use Woolwich Switch & Save package with no valuation or legal costs.
Flexibility: overpay, underpay & payment holidays
Available to all existing and new customers; with no fees to pay
80 per cent loan-to-value (LTV)
Minimum loan size £50,000
“In addition, if people opt for the short term fixed rates now it could cost them substantial amounts to re-enter the market in two or three years time when the rate matures as application fees are starting to creep up,” added Gray.
