Woolwich is to launch a hybrid product that offers customers a tracker for the first two years followed by a three-year fixed rate mortgage.
The product track base rate plus 2.99 per cent for the first two years and then reverts to a three-year fixed rate at 4.29 per cent. It is available for a £1,299 fee and up to 70 per cent loan-to-value.
The product is being introduced tomorrow as part of a relaunch of the lender’s residential and buy-to-let ranges.
Other changes include the extension from 60 per cent to 70 per cent LTV of the three-year fixed rate at 3.69 per cent and five-year fixed rate at 4.29 per cent.
For buy-to-let mortgages, fees are being set at £1,999 for mortgages up to £500,000 and £3,999 for mortgages over £500,000.
Barclays head of mortgages Andy Gray says: “These changes reinforce our commitment to the mortgage market and to giving customers choice and value, with an innovative option.
“‘Future Fix’ gives borrowers the best of both worlds, especially for those who may have been put off by trackers previously, as it offers a really good compromise – tracking whilst rates are low now and also fixing at today’s historically low prices for two years time.”