Woolwich lifetime tracker mortage relaunched

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Woolwich lifetime tracker mortage relaunched

Mon 21st Aug 2006

Woolwich has decided to relaunch its lifetime tracker mortgage, which is guaranteed to charge interest at only 0.19 per cent above the Bank of England base rate.

In a bid to cut into their competitors, the product is completely fee-free, charging no arrangement fees and no redemption penalties for moving the mortgage or changing the product.

The downside of this product is that it is only available to customers who can raise 20 per cent of the property's value themselves, precluding many first-time and younger buyers from taking advantage of this attractive rate.

Andy Gray, Woolwich's head of mortgages, said in a statement: "Money markets have pushed the cost of short-term fixed rates above five per cent so it is making them uncompetitive compared to tracker deals.

"We expect base rates to peak at five per cent by the end of this year, so tracker deals will still continue to offer better value over the longer term," he added.

In addition Woolwich offer a 10 year fixed rate mortgage at 4.98 per cent, though many borrowers will be reluctant to tie themselves to such a long deal.

Recent figures from the Council of Mortgage Lenders suggest the housing market remains strong, with £30.4 billion of secured lending being completed in July, the second highest month on record behind June 2006.