Woolwich cuts rates on fixed and tracker mortgages

Woolwich, the lending arm of Barclays, is cutting rates on its lifetime tracker, offset and fixed rate mortgages to encourage customers to take advantage of these fully flexible products. The new rates on these mortgages are effective Thursday, 15th January.

Included in Barclay’s range of mortgages is a market-leading one-year fix and track of 3.79 per cent and a five-year fixed rate of 4.69 per cent which reverts to a competitive lifetime tracker after the end of the fixed rate term. Alternatively, a straightforward lifetime tracker rate of 3.79 per cent and an offset lifetime tracker of 3.99 per cent, all at a maximum of 60 per cent loan to value, are also available. Further deals are available at 70, 80 and 85 per cent loan to value.

The best deal available for people who have savings is the Woolwich offset mortgage. At 3.99 per cent the Woolwich offset mortgage gives an equivalent gross rate of return on savings of around 5 per cent for basic rate tax payers and almost 7 per cent for higher rate taxpayers. Unlike some of its competitors, The Woolwich offset also has the advantage of being linked to both current and savings accounts.

Andy Gray, Head of Mortgages for Barclays said: “We have reviewed the market and taken the opportunity to reduce our short and long term fixed rates and key trackers where customers can get the best value. We have decided to refresh our offset tracker, as customers with savings are fairly restricted with few instant access rates above 2 per cent. We think with the current market offset is likely to appeal to a wider audience, as borrowers and savers look to maximise their finances.”

More information on the full range of Woolwich mortgages is available at www.barclays.co.uk/mortgages.