Woolwich cuts rates on broker range

9 July 2008

The lender is cutting rates on its most popular lifetime tracker products in a bid to encourage customers to take advantage of the flexible, fee-free products.

Woolwich says it is doing so at a time when many borrowers are sitting tight waiting for better news on short-term fixed rates.

It is also cutting rates on offset and longer term fixes as well as introducing a competitive three-year fix rate.

At the same time it will be re-introducing 90% LTV fixed products to help customers with smaller deposits access the competitive Woolwich products.

The best rate available on a Woolwich Lifetime Tracker through brokers is now 0.99% above base rate, a cut of 0.30%.

This makes it 1.08% better than the average two-year fixed rate in the market which Moneyfacts says is 7.07%.

Andy Gray, head of mortgages for Woolwich, says: “The two-year fixed rate market is hugely volatile at the moment.

"Many customers will be better served by other products such as the Lifetime Tracker which offers a much lower rate than current fixed rates and has no application fee."

He adds: "Woolwich will also be cutting rates on its offset and five and 10-year fixed rates as well as re-introducing a three-year fixed rate at a competitive 6.49%, well below the average two-year fixed rate to offer certainty for those who would still rather fix.

“Brokers will find that all of our products through brokers are now competitively priced,and are either the same rate, or within 10 basis points, of those available directly from the Woolwich