Woolwich resurrects fee-free tracker

22 August 2006
In response to the rising rates among mortgage products on the market, Woolwich has re-launched its lifetime tracker home purchase loan.

The lending specialist, a subsidiary of high street bank Barclays, had initially stopped offering the lifetime tracker product but has rescinded that decision now that many borrowers are beginning to look around for new deals after the base rate increase this month.

The Woolwich tracker mortgages lifetime interest rate will stay at 0.19 per cent above the Bank of England base rate for the life of the loan, and comes with no redemption penalties or arrangement fees.

"Money markets have pushed the cost of short-term fixed rates above five per cent so it is making them uncompetitive compared to tracker deals," said Andy Gray, head of mortgages for Woolwich.

"We expect base rates to peak at five per cent by the end of this year, so tracker deals will still continue to offer better value over the longer term."

Mr Gray advised borrowers who were nervous about interest rate movements to look at long-term fixed rate products which can start with rates of less than five per cent if you fulfil the required criteria.

Woolwich's lifetime tracker comes with a minimum loan size of £50,000 and up to 80 per cent loan to value.

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