The rate is fixed until 31 May 2016 with an arrangement fee of £495 and gives consumers a range of flexible features including the ability to make overpayments of up to 5 per cent per annum without any additional charge.
The deal is available to new and existing borrowers, and new borrowers remortgage under the Woolwich Switch and Save package with no valuation or legal costs. The product has no higher lending charges or early repayment charges beyond its fixed rate period with flexible features such as overpaying by 5 per cent per annum and portability. It’s available up to 95 per cent LTV.
Andy Gray, head of mortgages at Woolwich, said: “This is the best 10-year fixed rate available and as we are not predicting interest rates to go any lower than they currently are over the longer term, this really is a great rate at rock bottom price and beats even short-term rates. This provides consumers with an excellent opportunity to take advantage of the certainty that a fixed rate provides over the longer term and at the same time the flexibility to overpay.”
Harry Katz, principal at Norwest Consultants, said: “For those wishing to fix for 10 years it doesn’t look a bad deal. Indeed, not withstanding MPC rumours of a slight drop in rates, I personally envisage the possibility of a rise during the next 10 years. So all in all it’s well worth considering for the right clients. The only blot on this proposition is the hitherto appalling administration from the Woolwich and one can only hope it has improved out of all previous recognition.”
