Woolwich cuts mortgage rates

Barclays' mortgage subsidiary Woolwich has reduced its mortgage rates, now offering a tracker mortgage, guaranteed to stay just 0.18% above the Bank of England base rate (thus offering a current rate of 5.43%) for life, with no arrangement and no redemption penalties, together with a best buy 10 year fix at 5.28%.

Andy Gray, head of mortgages for Woolwich, said, "The improvement in the outlook for long term interest rates is allowing us to offer a 10 year fixed rate. At the same time we will be cutting the rate on our best buy lifetime tracker and five year fixed rates to provide consumers who are worried about future rises in interest rates with complete certainty.

"The lifetime tracker will reduce to base + 0.18% from +0.23% with the optional purchase of a cap at 5.99%, the five year fixed is cut from 5.69% to 5.49% and the 10 year fixed rate will be a best buy reducing from 5.37% to 5.28%.

"The lifetime tracker and the 10 year fixed provide consumers with great long term value and added protection for those worried about future rate rises."

Tracker key facts:

• No arrangement fees, no early repayment charges or tie-ins
• For customers switching from another lender we will cover legal and survey fee
• Available to all existing and new customers; with no fees to pay
• Tracks at base +0.18 per cent for the life of the loan
• 'Track and cap' provides added protection for a one off fee of £595 which guarantees the rate will not rise above 5.9% for the first two years
• Rate available up to 80% of the purchase price/valuation
• Overpay by any amount at any point during the life of the mortgage
• Minimum loan size on Lifetime Tracker £50,000, Maximum loan size £2m
• Maximum loan size on Capped tracker £500,000

Fixed rates key facts