It has also launched a tracker mortgage, guaranteed to stay 0.18 per cent above the Bank of England base rate (current rate of 5.43 per cent) for life, with no arrangement and no redemption penalties.
Andy Gray, head of mortgages for Woolwich, said: “The improvement in the outlook for long term interest rates is allowing us to offer a 10-year fixed rate. At the same time we will be cutting the rate on our best buy lifetime tracker and five year fixed rates to provide consumers who are worried about future rises in interest rates with complete certainty.
“The lifetime tracker will reduce to base + 0.18 per cent from +0.23 per cent with the optional purchase of a cap at 5.99 per cent, the five year fixed is cut from 5.69 per cent to 5.49 per cent and the 10 year fixed rate will be a best buy reducing from 5.37 per cent to 5.28 per cent.
“The lifetime tracker and the 10-year fixed provide consumers with great long term value and added protection for those worried about future rate rises.”
Key product facts include:
Trackers
- No arrangement fees, no early repayment charges or tie-ins
- For customers switching from another lender we will cover legal and survey fee
- Available to all existing and new customers; with no fees to pay
- Tracks at base +0.18 per cent for the life of the loan
- ‘Track and cap’ provides added protection for a one off fee of £595 which guarantees the rate will not rise above 5.99 per cent for the first two years
- Rate available up to 80 per cent of the purchase price/valuation
- Overpay by any amount at any point during the life of the mortgage
- Minimum loan size on lifetime tracker £50,000. Maximum loan size £2 million
- Maximum loan size on Capped tracker £500,000
- 10-year fixed at 5.28 per cent reverts to lifetime tracker (base +0.95 per cent), 5-year fixed at 5.49 per cent
- Arrangement fee of £595
- Rate available for mortgages up to 80 per cent of the purchase price/valuation
- Early repayment charge 6 per cent of the balance repaid
- Customers can overpay by 5 per cent each year without penalty on the 10 year fixed and 10 per cent each year on the 5 year fixed
- For customers switching from another lender we will cover legal and survey fees
- Maximum loan size £2 million
