The lifetime tracker product is priced at Bank Base Rate (BBR) plus 0.23 per cent but has an option that allows the borrower to cap the rate should BBR continue to rise, which costs an extra £595.
The product is available up to 80 per cent loan-to-value and has no arrangement fee, no early repayment charges and an overpayment facility.
Woolwich believed the product would suit those looking to secure repayments at an economically uncertain time.
Andy Gray, head of mortgages at Woolwich, said: “Fixed rates are still expensive in comparison to trackers and with swap rates heading higher they don’t look as if they are going to get any cheaper in the short term. This is why we have launched this unique product, a ‘track and cap’ if you like. With no lock-ins, it gives consumers the best of both worlds, so if interest rates go up you are protected and if rates head South, you win.”
The product is available up to 80 per cent loan-to-value and has no arrangement fee, no early repayment charges and an overpayment facility.
Jason Richardson, director of YooToo Financial Services, said: “As there’s a high possibility of an increase in rates, everyone seems to be going for fixes at the minute. However, few lenders offer the flexibility of a tracker, and overpayment options suit many clients. This deal is particularly good as it gives you the best of both worlds – a good rate and no early repayment charges.”
