Woolwich mortgage rates cut

Date:Thursday 26th March 2009
Author: Susanna Kavka

Woolwich has announced that it is offering new mortgage products at rates reduced by up to 0.5 per cent.

The lender, which is a trademark of Barclays, has launched a three-year fixed-rate product at 3.89 per cent for a maximum loan-to-value (LTV) ratio of 60 per cent.

This represents a fall of 0.4 per cent on its previous offering.

Meanwhile, the firm has also launched a new five-year fixed-rate product of 5.29 per cent for a maximum LTV of 70 per cent, a fall of 0.5 per cent on previous offerings.

Head of mortgages at Woolwich Andy Gray said: "What we are seeing is what customers have been hoping for all along - more affordable mortgages."

He added that increasing competition in the market and reduced longer-term fixed rates resulting from lower interest rate expectations were behind the cheaper home loans.

Recently, Legal & General announced it had launched new mortgages, such as a two-year fixed-rate mortgage from 6.39 per cent.