Woolwich cuts trackers, offers new fixes

Barclays mortgage subsidiary Woolwich is cutting the rates on its most popular Lifetime Tracker product (from 10/07/08) to encourage customers to take advantage of these fully flexible, fee free products at a time when many are sitting tight waiting for better news on short term fixed rates. It is also re-introducing fixed rate products with loan to value options of up to 90 per cent.

The best rate available on a Woolwich Lifetime Tracker is now 0.89 per cent above base rate with no fees or early repayment charges. This makes it 1.18 percentage points better than the average two year fixed rate in the market which is currently 7.07 per cent according to Moneyfacts.

Andy Gray, Head of Mortgages for Woolwich, said, "The two year fixed rate market is hugely volatile at the moment. We have decided that our customers will be better served by other products such as the Lifetime Tracker which offers a much lower rate and full flexibility to change to another rate at a later time.

"It is clear from Council of Mortgage Lenders figures this week that many borrowers are sitting tight and refusing to remortgage at the moment as they wait for better rates to come along. However, if customers are sitting on high standard variable rates having come to the end of a promotional period, they would be better switching to a Lifetime Tracker which has all the flexibility of SVR but a much better rate."

Woolwich will be reintroducing a three year fixed rate mortgage at a competitive 6.49 per cent, well below the average two year fixed rate to offer certainty for those who would still rather fix.

Key features on all Woolwich residential mortgages:

• Maximum flexibility: overpay, underpay & payment holidays
• Available to all existing and new customers
• No higher lending charge or early repayment charge beyond the fixed, capped or discounted period
• Daily interest
• Flexible features on fixed rate mortgage such as overpaying by up to 10 per cent per year
• Fully portable