Due to a change in swap rates, its 10-year fixed rate mortgage has moved from 5.28 per cent to 5.59 per cent with an application fee of £595 with a loan-to-value (LTV) of 80 per cent.
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Following the standardisation of the LTV at 95 per cent on its two, three and five-year fixed rates, the lender has reduced the rates on its two and five-year fixes from 5.99 per cent to 5.79 per cent for 95 per cent LTV, with a fee of £595. The fees-free two-year fix at 95 per cent LTV has also dropped to 5.99 per cent.
Andy Gray, head of mortgages for Woolwich, said: “There is usually an up lift in mover activity at this time of the year, and we are targeting those with smaller deposits, most often first-time buyers (FTBs). At the 95 per cent LTV level we have effectively reduced the rate from 5.99 per cent to 5.79 per cent for the two and five-year deals – for the average loan that’s a reduction in interest of £1,200 over five years. This is good for FTBs in an uncertain market.”
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Mike Pendergast, IFA at Zen Financial Services, said: “As short-term rates have fallen it is likely that Base Rate will rise. This isn’t a major change and won’t have a major impact.”
