A three year fixed rate at maximum 60% loan to value leads the high street banks at 3.89%, a drop of 0.4%, with a similar fall in the 70% loan to value rate. The largest fall is in the five year fixed mortgage range, with a 0.5% reduction. Woolwich is retaining its popular cap on tracker rates increases, which enables customers to know exactly how much their rate could rise in the future. The rate caps are being reduced in line with the tracker and offset rates by 0.4 percentage points.
"What we are seeing is what customers have been hoping for all along - more affordable mortgages," said Andy Gray, Head of Mortgages at Woolwich. "There are two main causes for the change - increasing competition in the market and reduced longer term fixed rates thanks to lower interest rate expectations.
"The last three months have seen an increase in mortgage activity across the UK, and our more competitive mortgage range can only help."
