Woolwich mortgage 'offsets' swap rates

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Woolwich mortgage 'offsets' swap rates

Woolwich has launched a new mortgage to help customers deal with the short-term hike in swap rates.

The group's fix and track package will offer customers a rate of 5.99 per cent at a fixed-rate for a period of a year.

It will then revert to a lifetime tracker rate at 0.69 per cent over the base rate for the rest of the mortgage term.

The Woolwich mortgage allows for a loan-to-value rate of up to 85 per cent, while the package is fully portable.

Requiring an arrangement fee of £495, the Woolwich mortgage necessitates early repayment charges of six months interest at the buy to let SVR or fixed rate whichever is higher until October 2nd 2010.

Andy Gray, head of mortgages for the Woolwich, said: "Swap rates have reached their highest levels since 2000 over the last two weeks as the chances of base rates increasing over the next couple of months become reality."

Predicting that the base right might be increased by a quarter point one or two times before falling away next year, he added that the "one year fix and track will give buy-to-let investors the stability they need over the next year whilst allowing them to take full advantage of any fall in interest rates with a competitively priced follow-on lifetime tracker".

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