This is 1.5% lower than the previous rate for the same product.
After one year the product tracks the Bank of England base rate plus 2.29%. It is available at 60% LTV, has an early repayment charge of 2% for the first three years and an app-lication fee of £995.
The product is also available with Woolwich’s Switch & Save facility, which allows borrowers to remortgage without legal or valuation fees.
Andy Gray, head of mortgages at Woolwich, says: “We are seeing some of the best mortgage rates for a generation due to to increasing competition.”
Sole broker Roy New says: “This is a fantastic product. It’s about time lenders started giving something back to brokers.”