Woolwich launches 5.29% ten-year fix

Woolwich is launching a ten-year fixed-rate mortgage at an interest rate of 5.29%.

The loan could prove attractive to some of the 1.7 million fixed-rate borrowers coming to the end of their terms this year, many of whom have been paying interest at below the current base rate level of 5.25%.

Interest rates on most current mortgage products are above base rate, leaving millions of home owners to deal with a substantial “payment shock” in the months ahead.

The Woolwich ten-year fix, which has a loan to value ratio of 60%, is aimed at borrowers who have built up equity in their homes.

Andy Gray, head of mortgages for the Woolwich, said: “The mortgage market is hugely uncertain at the moment and lenders are continually re-pricing products. However, the long-term swap market has steadied at lower levels and we have been able to put together a long-term product at an historically very competitive rate.”

Mr Gray believes it will prove to be “the best priced long-term product in the market place”.

Product details are as follows: Fixed for ten years at 5.29%; reverts to tracker at base + 0.95% after initial fixed-rate period; arrangement fee £995 (can be added to the loan); loan to value of 60%; borrowers can overpay up to 5% per annum without any charges during the fixed-rate period; 6% early repayment charge during the fixed-rate period; customers switching from another lender can use Woolwich Switch & Save package with no valuation and legal costs.

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