Woolwich launches new 10 year fixed rate mortgage

Woolwich is launching a new ten year fixed rate mortgage at a market leading 5.59 per cent this Friday (14/9/2007) as long term swap rates have decreased markedly over the least week, and borrowers are increasingly looking for security in a volatile market.

Andy Gray, head of mortgages for the Woolwich, said: “There has been a lot of speculation in the market about where mortgage rates are heading. However, whereas some lenders are having to re-price upwards, our funding reflects our strength and we are able to take advantage of the current decrease in long term SWAP rates, and price a 10 year fix well in advance of anything else in the market.

“Our aim is to offer borrowers value over the long term. With many borrowers coming off cheap fixed rate deals this autumn, and many people in the market worried about volatility in interest rates, this product offers long term security. We are expecting this to be very popular with borrowers as they look to guarantee the monthly payments for their biggest outgoing for the long term.”

Product detail on ten year fixed rate:

Fixed for ten years at 5.59 per cent
Reverts to tracker at base + 0.95% after ten years
Arrangement fee £995 (can be added to the loan)
Loan to value of 80 per cent
6 per cent early repayment charge in the first 10 years
Borrowers can overpay up to 5% per annum without any charges in the first 10 years.

In addition:

For Loan to Value of 95 per cent there is a rate of 5.99 per cent.

Key features on all our residential mortgages:

Customers switching from another lender can use Woolwich Switch & Save package with no valuation and legal costs.
Maximum flexibility: overpay, underpay & payment holidays
Available to all existing and new customers
No higher lending charge or early repayment charge beyond the fixed, capped or discounted period.
Daily interest
Flexible features on fixed rate mortgage such as overpaying by 5 per cent per year.
Fully portable