The mortgage has a current rate of 4.94 per cent, with no arrangement fees, redemption penalties or tie ins. The mortgage is up to 80 per cent loan-to-value (LTV) and allows overpay, underpay and payment holidays. There is a minimum loan size of £50,000.
The deal will be available to existing and new customers, with no fees to pay, and customers who switch from another lender will be able to do so without valuation or legal costs.
Andy Gray, head of mortgages at Woolwich, said: “Money markets have pushed the cost of short-term fixed rates above 5 per cent, so it is making them uncompetitive compared to tracker deals. We expect base rates to peak at 5 per cent by the end of this year, so tracker deals will still continue to offer better value over the longer term. Those borrowers who are nervous about interest rates movements should opt for our latest long term deal, a fixed rate of 4.98 per cent for 10 years.
“In addition, if people opt for the short-term fixed rates now it could cost them substantial amounts to re-enter the market in two or three years time when the rate matures, as application fees are starting to creep up.”
James Cotton, mortgage specialist for London & Country, welcomed the return of the product. He said: “It was an excellent deal the first time round and a very popular one. Longer term rates are always a very good thing to have and suit those with smaller mortgages or who aren’t interested in switching. The fact there are no fees is also good, as a lot of deals are all about the rates, but have very high fees.”
