Woolwich cuts rates but puts up two-year deal

Woolwich has cut rates on its fixed rate range by up to 0.5% while increasing the rate and fees on some of its two-year products.

The Barclays-owned lender has reduced its five-year fix from 5.99% to 5.49% and has also cut its three-year fixed rate deal from 5.69% to 5.49%.

Both products are available at up to 80% LTV and come with a £999 fee.

But at the same time Woolwich has upped its two-year fixed rate deal at 2.98% to 3.14% and increased the minimum loan size from £200,000 to £250,000.

The maximum LTV remains at 70% LTV and the application fee will also stay the same at £1,999.

Fees on the two-year fixed rate deals at 3.59% and 3.89%, available up to 70% and 75% LTV respectively, are also going up from £199 to £499.

Speaking about the changes to the five-year fix Andy Gray, head of mortgages for Barclays, says: “The improvement to the five-year fixed rate mortgage will be welcomed by those looking for certainty over a longer period and with a smaller deposit.

“It’s a strong rate that will give a measure of protection from future base rate increases for those who need it most – typically those either just embarking on buying a home or not too far along.”