Woolwich Offers New 90% LTV Mortgages

New 90% LTV fixed rate mortgage deals from Woolwich, the mortgage arm of Barclays, are being launched today to help more customers buy a home or remortgage.

Woolwich is extending its range of fixed rate mortgage deals to 90% loan to value (LTV), including a competitive fee-free three year fixed rate at 4.99%.

The 90% LTV mortgages also include a 5 year fixed rate at 5.49% with no application fee for customers who qualify for a Barclays Loyalty mortgage and a fee of just £499 for all other borrowers.

The minimum loan available at 90% Loan to Value is £50,000 and the maximum is £500,000. Borrowers will be assessed for the mortgage in line with the Woolwich standard lending policy.

Once the fixed rate period ends, all the deals go back to a lifetime tracker of 3.39% above the base rate.

There are also a range of 80 and 85% LTV mortgages which will be kept at their current rates.

Andy Gray, head of mortgages for Barclays, said: “As one of the UK’s largest lenders we recognise the importance of supporting the first time buyer market which is why we’ve committed today to extend our lending to 90 per cent.

Higher loan-to-value mortgages with more competitive rates have started to come through the market this year and our deals are sitting well below the average rates* to encourage homebuyers and remortgage customers alike to get some great fee-free mortgages.”

As an example, a first time buyer buying a home for £150,000 would need a mortgage of £135,000 and pay £788.41 a month on the three year fixed rate deal at 4.99%.

Homeowners who have 10% equity in their property who perhaps currently have their lenders standard variable rate (SVR) may want to consider fixing their monthly mortgage payments. They could remortgage and by opting for a ‘Switch and save’ service which provides free legal work and valuation.

 MoneyHighStreet comments: “A fixed rate mortgage can help with your budget as you know your mortgage payments are a set amount for an agreed period of time. It’s good to see that Woolwich are increasing the options available for those with a smaller deposit, particularly first time buyers.

Another option is to consider a discount mortgage.

“Or with savings account interest rates as low as they currently are, many are turning to an offset mortgage – whereby the interest is paid on savings at the same rate paid on the mortgage and interest earned on savings is offset against the mortgage payments.

“Whatever you opt for though be sure to do your research, seeking professional advice if need be, and choose what’s best to meet your particular circumstances.”