Woolwich offers tracker mortgage with capped interest rate

Woolwich, part of Barclays, are offering a lifetime tracker mortgage with a capped interest rate.

This tracker mortgage from Woolwich has a capped interest rate of 5.99% until 30 April 2012.

The interest rate is 2.99% + the Barclays Bank base rate, currently 0.5%, as per the Bank of England base rate, meaning the current rate is 3.49%

With a capped interest rate it means that during the period to end April 2012, the interest rate applied will not go above 5.99%.

Up to 60% of the value of your home can be borrowed.

There is an application fee for new customers of £995. For existing customers switching mortgage a fee of £100 applies.

There is an early repayment period to the end of April 2012.

This means up until this point you can overpay by up to 10% per year without incurring an early repayment charge. Overpay more during this period and you will incurr a charge of 2% of the balance repaid.