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Woolwich cuts rates on fixes and trackers

Woolwich is making cuts of up to 0.5% points on its fixed and tracker mortgages, as well as its offset mortgage.

The range features two, three and four-year fixed rates all below 4%.

A three-year fixed rate at maximum 60% loan-to-value is now 3.89%, a drop of 0.4%, with a similar fall in the 70% loan-to-value rate.

The largest fall is in the five-year fixed mortgage range, with a 0.5 reduction.

Woolwich is retaining its cap on tracker rates increases, which enables customers to know how much their rate could rise in the future. The rate caps are being reduced in line with the tracker and offset rates by 0.4% points.

Andy Gray, head of mortgages at Woolwich, says: “What we are seeing is what customers have been hoping for all along – more affordable mortgages. There are two main causes for the change – increasing competition in the market and reduced longer term fixed rates thanks to lower interest rate expectations.

“The last three months have seen an increase in mortgage activity across the UK, and our more competitive mortgage range can only help.”


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