Woolwich launched a short-term fix and track on its residential range at the beginning of June.
The BTL product will initially offer a 1-year fixed rate at 5.99 per cent to buy-to-let investors. After the first year, the rate will revert to a lifetime tracker at 0.69 per cent above base.
Andy Gray, head of mortgages for the Woolwich, said: “Swap rates have reached their highest levels since 2000 over the last two weeks as the chances of base rates increasing over the next couple of months become reality. Most forecasters in the short-term expect at least one more rise of 0.25 per cent in base rates, and some expect two, before stabilising or falling back in 2008. Therefore the one year fix and track will give buy to let investors the stability they need over the next year whilst allowing them to take full advantage of any fall in interest rates with a competitively priced follow-on lifetime tracker.”
The product will also offer a ‘drop and lock’ facility whereby customers will be able to switch into another Woolwich fixed or capped rate after the first year without incurring an early repayment charge.
Product details on the Buy to Let ‘Fix and Track’:
- 1-year fixed at 5.99 per cent, reverts to lifetime tracker (base +0.69 per cent)
- Arrangement fee of £595
- Drop and lock facility which kicks in after the first year
- Rate available for mortgages up to 85 per cent of the purchase price/valuation
- Early repayment charge of six months interest at the buy-to-let SVR or fixed rate whichever is higher until 2 October 2010. This is not payable if the drop lock facility is utilised from year two.
- For customers switching from another lender we will cover legal and survey fees under our Switch & Save option
- Mortgage fully portable
