In the face of increasing SWAP rates which are pushing fixed rate mortgage deals higher, Woolwich has chosen to simplify its range.
By standardising the loan-to-value (LTV) at 95 per cent on all its 2-, 3- and 5-year fixed rates Woolwich is able to reduce the rate on its two- and five-year fixed deals from 5.99 per cent to 5.79 per cent for 95 per cent LTV with a fee of £595. The fee free 2-year fixed rate has seen the rate on 95 per cent LTV reduce from 6.19 per cent 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 having smaller deposits, most often first-time buyers. At the 95 per cent loan-to-value level we have effectively reduced the rate from 5.99 per cent to 5.79 per cent for both the 2 and 5 year so for the average loan that’s a reduction in interest payable of £1,200 over 5 years. This is good news for first-time buyers in an uncertain market.”
At the end of the fixed rate period Woolwich products switch to a lifetime tracker at base +0.95 per cent.
Due to change in SWAP rates the ten-year fixed rate mortgage has moved from 5.28 per cent to 5.59 per cent the rate with an application fee of £595. The loan-to-value is 80 per cent.
