Woolwich cuts mortgages 0.5%

Thursday, 26 March 2009 12:00

Woolwich, the mortgage arm of Barclays, has reduced interest rates by as much as 0.5 per cent on its fixed, tracker, and offset mortgages, as well as its already best-buy offset mortgage.

The range features two, three and four year fixed rates are all below four per cent and the five year option received the biggest rate cut.

The five year fixed mortgage range, with a 0.5 reduction, now has a rate of 4.79 per cent.

The three year fixed rate at maximum 60 per cent loan to value dropped 0.4 per cent to 3.89 per cent. A similar two or four year dropped 0.3 per cent to 3.89 per cent for two years and 3.99 per cent for four.

Woolwich is keeping the cap on tracker rates increases. The rate caps are being reduced by 0.4 percentage points – in line with the tracker and offset rates.

All these mortgages carry a fee of £995 to sign up or switch.

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

“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.”

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