Woolwich launches fee free lifetime tracker mortgage

With two base rate increases already this summer and the expectation that we could be reaching the top of the interest rate cycle, Woolwich today launches a lifetime tracker with no application fees at just 0.17 per cent above base rate (current payment rate 5.92 per cent), its best ever rate for a fee free lifetime tracker.

Andy Gray, head of mortgages for Woolwich said: "Interest rates are getting near the top of their cycle and tracker mortgages are proving more popular than ever as they tend to have a lower starting rate than other products. However, we have decided to keep our fix and track product at 5.39 per cent despite the base rate increase in July, to allow customers the choice between going straight on to a tracker or fixing for one year to make sure all interest rate increases are out the way before they move on to a tracker."

"We are also introducing a new lifetime tracker which has a two year discount at 0.16 per cent below base rate (current payment rate 5.59per cent). The thinking behind this is that over the coming couple of months many people will be coming off very cheap two year fixed rate mortgages and will see a very big jump in the mortgage rates available to them. With interest rates near the top of the cycle this new tracker will help customers adjust to the higher payments they will have to make with limited likelihood of much higher payments in the short term. This will then revert to a lifetime tracker after two years, still at a very competitive rate but will have had the effect of helping customers adjust to the higher rates in the market."

Product details

Fee free Lifetime Tracker

Lifetime tracker at base +0.17 per cent, current rate 5.92 per cent
No arrangement fee
Mortgage fully portable
Rate available for mortgages up to 60 per cent of the purchase price/valuation
No early repayment
For customers switching from another lender we will cover legal and survey fees under our Switch & Save option
Lifetime Tracker at base +0.28% up to 80 per cent of the purchase price/valuation

Two year discount tracker reverting to lifetime tracker:

2 year discounted tracker at base -0.16%, current rate 5.59 per cent
Reverts to tracker at base + 0.95% after the two year discounted period
Arrangement fee £995
Mortgage fully portable
Rate available for mortgages up to 80 per cent of the purchase price/valuation
Borrowers can overpay by 10% per annum without any charges in the first 2 years.
1 per cent early repayment charge in the first 2 years
Maximum mortgage £500,000
For customers switching from another lender we will cover legal and survey fees under our Switch & Save option

1 year fix and track:

1 year fixed at 5.39 per cent reverts to lifetime tracker (base +0.39 per cent)
Arrangement fee of £595
Drop and lock facility which kicks in after the first year
Mortgage fully portable
Rate available for mortgages up to 80 per cent of the purchase price/valuation
Early repayment charge of 1per cent on the amount repaid within first three years. This is not payable if the drop lock facility is utilised
For customers switching from another lender we will cover legal and survey fees under our Switch & Save option

Key features on all our residential mortgages:

Available to all existing and new customers
Customers switching from another lender can use Woolwich Switch & Save package with no valuation or legal costs.
Maximum flexibility: overpay, underpay & payment holidays
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 10 per cent per annum without incurring any early repayment charge (on the 10 year fixed rate borrowers can overpay by 5 per cent per annum).
Fully portable