Having launched its lifetime tracker at 0.19 above Bank of England Base Rate in May, Woolwich has taken the decision to re-price the deal.
Woolwich re-priced its fixed rate range, increasing its lifetime tracker to 0.29 per cent above Base Rate, for life. The offer is still available at 75 per cent loan-to-value and includes no early repayment charge or arrangement fee. Woolwich has also confirmed it has introduced a minimum advance of £100,000 to its lifetime tracker product. For deals below the £100,000 advance the rate will revert to Base Rate plus 0.49 per cent.
Announcing the changes, a spokesperson for Woolwich said the alterations had been made following a review of the market: “The lifetime tracker has been hugely successful and we are re-pricing to balance our portfolio.”
James Cotton, mortgage specialist at London & Country, said the deal still represented good value, despite its upwards rate movement. He said: “Woolwich’s original lifetime tracker deal was really good, and unfortunately deals like that don’t tend to last very long. “Woolwich obviously did a lot of business through it, which has led to an upwards pricing. The 0.29 per cent and 0.49 per cent above Base Rate are still good deals as the other benefits they provide, such as no early repayment charges, are good. When you hold it up against the original deal it is not as good, but both are still well product offerings.”
Phil Perry, director at ARK Financial Planning, added: “A move by 0.1 per cent is not going to make a massive difference, and any deal that is on or around the Base Rate without penalties needs to be looked at.”
