Woolwich cuts mortgage rates

Woolwich, part of Barclays,  is cutting its tracker and fixed rate mortgage rates and its offset mortgage by up to 0.5%.

The lifetime tracker mortgage with capped interest rate will have a new interest rate of +2.74% over the Barclays Bank base rate, a cut of 0.25%.

This rate is for mortgages up 60% LTV and the cap will be reduced to 5.74%.

Woolwich is also introducing a new capped lifetime tracker for up to 70% LTV. This will be at 2.99% over the Barclays Bank base rate, with a cap of 5.99%.

Head of Mortgages at Woolwich, Andy Gray, said ‘What we are seeing is what customers have been hoping for all along – more affordable mortgages. ‘

He added ‘There are two main causes for the change – increasing competition in the market and reduced longer term fixed rates thanks to lower interest rate expectations.’

Woolwich is reducing the mortgage rate on other products as well:

• 2 Year Fix & Track, reduced by 0.3%
• 3 Year fixed rate mortgage, reduced by 0.4%

The 5 year fixed rate mortgage is also being reduced:

• 60% LTV, reduction of 0.3%
• 70% LTV, reduction of 0.5%

All of these Woolwich mortgage products have a £995 fee.