With a current rate of 5.14 per cent, the offset mortgage will be available up to 80 per cent loan-to-value (LTV) and has a fee of £595. The lifetime tracker, at a current rate of 4.92 per cent, has a fee of £795.
Both products have no early redemption charges (ERCs), are fully flexible and have free legal fees and surveys for remortgages.
Andy Gray, head of mortgages for Woolwich, said: “The latest offset mortgage means that a borrower with an average mortgage of £100,000 would only have to offset an average £4,200 to keep monthly payments as low as our lifetime tracker. However, if you can’t muster that amount of savings, the lifetime tracker makes absolute sense.
“When we first launched offset six years ago, the rate was set at 0.75 per cent above BBR and although it became a very popular product, it was seen as one that benefited those with large savings balances the most. However, today’s rate makes the offset better value than most trackers in the current market.”
Roy New, a London-based sole broker, welcomed the products. He commented: “I think these are excellent rates, which is great for the client. But I am against arrangement fees, as they seem to be going forever upwards. The offset is a good product, though it doesn’t suit everyone. The Woolwich is going the right way and are obviously looking to pick up a greater market share.”
