With two base rate increases already this summer and the expectation that we could be reaching the top of the interest rate cycle, Woolwich has launched 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.”

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Product DetailsFee 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 Woolwich 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

Customers can find out more about all Woolwich new and existing mortgages by contacting their local Barclays or Woolwich branch, via the internet on www.woolwich.co.uk, or by telephoning 0845 607 1111.