This is the fourth rate reduction in two months from Woolwich. Commenting, Andy Gray, head of mortgages at Woolwich, said: “Our relaunched two year fixed rate mortgages will be extremely attractive to new and existing customers. People with smaller deposits in particular will welcome the new two year fixed rates [80% LTV, 5.49% rate reduced from 5.99%, £999 fee]. There’s clear blue water between this and its closest competitor in the market [0.3% lower than its closest competitor].”
For two and three year mortgages at 70% LTV, Woolwich offers both lower and higher fee versions of its mortgages.
“At 70% loan to value, one of our two year fixed rates has the lowest fee of the high street banks in its class and a rate of just 3.89% [2 year fixed, 3.89% down from 4.09%, 70% LTV, fee £499, min £50k loan]. It is also available at a slightly higher fee for 3.79% [2 year fixed, 3.79% down from 3.99%, 70% LTV, fee £999].
“The lower and higher fee mortgages for three year fixed rates are also extremely competitive [3 year fixed, 4.59% down from 4.69%, 70% LTV, fee £499, min £50k loan; 3 year fixed, 4.49% unchanged, 70% LTV, fee £999].
“Woolwich is competing fiercely on all fronts - trackers, fixed rates and offset mortgages, have all been reduced or introduced in the last two months.”
