Available from an initial rate of 5.39 per cent, the product will revert to Bank of England Base Rate plus 0.39 per cent after the first year, as part of a lifetime tracker offer. The mortgage is fully portable and includes an arrangement fee of £595. A loan-to-value of 80 per cent is in operation with the product available to new and existing customers.
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Andy Gray, head of mortgages at Woolwich, said: “The strength of this product is that the one-year fix will clip the wings of any further interest rate rise this year while allowing borrowers to take full advantage of any fall in interest rates next year.
“The ‘drop and lock’ facility means that if rates don’t fall as forecast, customers will have the extra security of being able to fix on another product to ensure they know their future payments.”
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Mike Pendergast, IFA at Zen Financial Services, said: “Fixed rates are at the high end of the 5 per cent range, so the rate is quite good, and the fact that it is portable is always welcomed.”
