Barclays announces rate cuts to mortgages

With effect from Tuesday 16th September, Woolwich is cutting rates on both fixed and lifetime tracker mortgages, and introducing a competitive new lending tier at 75% loan to value.

The new mortgages include:

2 year fixed down from 5.99% to 5.79%
3 year fixed down from 5.69% to 5.54%
5 year fixed down from 5.79% to 5.64%
10 year fixed down from 5.69% to 5.64%

All of the above have a £995 fee and maximum loan to value of 60%.

In response to customer need, Woolwich has introduced a competitive 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.

Changes to lifetime trackers include a new tracker with no fee and no early repayment charge down from base 0.89% to base 0.84%, remaining the most flexible product available. Another lifetime tracker has a £995 fee and 1% early repayment charge down from base 0.69% to base 0.64%. All lifetime trackers with an early repayment charge 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 £50,000, has also been removed.

"With many commentators expecting base rates to come down, people are looking for good value trackers," said Andy Gray, Head of Mortgages for Woolwich. "With our drop lock option, 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. We've also removed the minimum loan size on our lifetime tracker, increasing its appeal to a wider range of customers."

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2008-09-16 00:00:00 © Moneyextra.com