Woolwich mortgage rates drop

17 September 2009 / by Andy Davies

The Woolwich is set to reduce mortgage rates on some of its products for the second time in a month.

Launching today, Woolwich's new mortgage rates will include a discounted 60 per cent LTV one-year track mortgage at 1.98 per cent. Andy Gray, head of mortgages at Woolwich, believes this represents, "the right mortgage at the right time," as more people are looking for mortgages.

He explained: "If base rate conditions remain the same, this would then roll into a 2.99 per cent rate, which is an extremely strong rate. It's a good mortgage, particularly for those who believe the best mortgage rates are still to come, and also for customers simply looking for a short term, competitive home for their mortgage."  

Meanwhile, rates on 70 per cent LTV two-year fixed mortgages have been cut by 10 per cent to 3.99 per cent and 4.09 per cent for a fee of £999 and £499 respectively.

Mr Gray added: "For anyone looking for the security of a longer deal, there are two and three-year fixed rate mortgages available for both new and existing Woolwich customers at extremely competitive rates."

Commenting on the reduction in mortgage rates as Halifax also launches a two-year fixed rate of 2.99 per cent, Hannah Mercedes-Skenfield, spokesperson for moneysupermarket.com said:

"There is no doubt that the mortgage market is in need of some good news and lenders lowering rates should offer just that however these products underline a growing trend in the mortgage market, which is that much of the innovation seems to be targeted for marketing impact, rather than real borrower benefit," she said.

"Choosing a mortgage is one of the most important financial decisions we make in our lives, so it makes sense to shop around and do the maths to make sure you get the best deal possible, rather than be seduced by a headline rate," she added.

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