Woolwich cuts mortgage rates

Woolwich, owned by Barclays, has cut its fixed rate mortgages by up to 0.5%.

With new 2, 3 and 5 year fixed rate mortgages Woolwich is really trying to make its products attractive to new and existing customers.

The reduction comes in the wake of others, including Nationwide, Northern Rock and HSBC, reducing their mortgage rates.

Competition is clearly hotting up in the mortgage market.

The new mortgages from Woolwich include

• 2 year fixed rate mortgage, up to 80% LTV, rate of 5.49% and a £999 fee
• 2 year fixed rate mortgage, up to 70% LTV, rate of 3.89% and a £499 fee – minimum £50,000 loan
• 3 year fixed rate mortgage, up to 70% LTV, rate of 4.59% and a £499 fee – minimum £50,000 loan

It will be interesting to see how quickly the other mortgage providers react to these new mortgages from Woolwich.