Woolwich cuts fixed mortgage rates again

Woolwich, the lending arm of Barclays, is cutting the cost of fixed rate mortgages by as much as 0.28 percentage points as SWAP rates continue to reduce the cost of funding mortgages.

From 29th August 2008, Woolwich will cut 0.28 percentage points from three year fixed rate mortgages, reducing the rate to 5.69 per cent from 5.97 per cent on mortgages with a loan to value of 60 per cent or less and to 6.19 per cent from 6.57 per cent at 80 per cent loan to value or less.

Cuts of up to 0.18 percentage points will be made to the range of five year fixed rate mortgages, now starting at 5.79 per cent, and the longer term ten year fixed rates, now available at 5.69 per cent. At the end of the fixed rate period all of these mortgages revert to a rate of 0.95 above base (currently 5.95 per cent) for the remaining life of the mortgage.

Woolwich has also launched a new Lifetime Tracker at 1.19 percentage points above base (currently 6.19 per cent) for mortgages up to 80 per cent loan to value with a £995 fee. This supplements the existing best buy Lifetime Tracker rate of 0.69 above base for mortgages at a maximum loan to value of 60 per cent.

Chris Keane, Head of Mortgage Products for Barclays said: "Funding costs for fixed rate mortgages are coming down and competition is hotting up so we have taken the opportunity to reassert our position as one of the most competitive lenders in the market place by cutting the cost of our fixed rate mortgages. Customers will also benefit for the term of the mortgage as all of our fixed rates revert to a very competitive tracker at 0.95 above base for the remaining life of the mortgage."

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