Woolwich mortgage rate cuts hint at competition in the market

22 October 2009 / by Rachael Stiles

There is evidence to suggest that competition could be returning to the mortgage market following another round of rate cuts from Woolwich mortgages.

Woolwich cut the rates on its fixed rate mortgage range this week, which will also benefit borrowers with limited deposits, by offering new deals for those looking to borrow up to 80 per cent loan to value.

The "really good news" for borrowers lies in the increased LTV made available on Woolwich mortgages, said Hannah-Mercedes Skenfield, mortgage spokesperson at moneysupermarket.com.

"It would seem that competition is certainly hotting up between the major players," she said, adding that is having a knock-on affect on the number of people looking for remortgage deals using moneysupermarket.com, which increased noticeably for the first time this year in September.

"With consumer focus currently on variable rates I will be very interested to see how consumers react to the new opportunities in fixed rates," Ms Skenfield continued, "and even more so in how quickly the other major lenders respond to Woolwich's latest play for an even greater share of the mortgage market."

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