View more on these topics

Barclays/Woolwich help with great escape

Barclays/Woolwich –  Great Escape Two-Year Fixed

Type: Fixed-rate remortgage

Fixed term: Until February 28, 2013

Fixed rate: 3.48%

Minimum loan: £50,000

Maximum loan: Up to 75% of valuation subject to a maximum of £1m

Income multiples: Based on affordability

Arrangement fee: None

Redemption fee: 3% of the amount repaid in the first two years

Introducer’s fee: Refer to lender

Tel: 0845 070 1567

Putting this mortgage in to its market context, London & Country Mortgages head of communications David Hollingworth says: “This product is part of an expansion of the successful Great Escape concept which offers remortgage borrowers the option of switching their deal without facing heavy set up costs.

“Much of the appeal of the product will stem from the lack of any arrangement fee coupled with the remortgage package of free valuation and free legal work.  The icing on the cake comes in the shape of a £300 cashback, which should neutralise any exit fee that may be imposed by the existing lender.”

Hollingworth feels that the addition of fixed rates to the Great Escape range and an increase in loan-to valuation to 75 per cent with this product is very welcome and should build on the popular Great Escape tracker product.

Turning to the potential drawbacks Hollingworth says: “There is not really a lot to dislike about the deal.  There are cheaper rates available but very little with this kind of fee incentive that will be of particular use to those with more modest mortgages that want to avoid heavy switching costs. 

“Hopefully there may be further expansion of the range and a longer term fix could complement these new rates nicely.”

Discussing the main competition, Hollingworth notes there is little that will offer exactly the same kind of package. But he points out RBS has a direct deal at 2.75 per cent with no fee, remortgage package and a £250 cashback.  “However this product is only available to a maximum LTV of 50 per cent rather than the more generous Woolwich limit of 75 per cent,” he says.

For bigger loans, Hollingworth thinks the attraction of lower interest rates that can be half a percent lower may outweigh the lack of fees that the Great Escape products offer.

Summing up, Hollingworth says: “With more activity on the remortgage front, the Great Escape deals are a welcome addition to Woolwich’s portfolio. There is the additional comfort that the products are priced on par with anything available in a branch. “


Suitability to market: Good

Competitiveness of rate: Good

Flexibility: Average

Adviser remuneration: Good

Overall 8/10


FOS may publish final decisions as it strives for transparency

The Financial Ombudsman Service is considering publishing some of its final decisions in a bid to improve transparency in its decision process. The FOS is about to start work on its budget and corporate plan for the next financial year and will consider how best to improve transparency. In the December edition of Ombudsman News, […]

Ashcourt Rowan parent appoints group COO

Syndicate Asset Management, the parent company of Ashcourt Rowan, has promoted director of planning Jeremy Rance to group chief operating officer. The move represents Mark Cheshire’s first key management appointment since his own appointment as interim group chief executive last month, following the resignation of group chief executive Jonathan Freeman. Rance will be responsible for […]


Sants tells MPs that misselling costs the public £600m a year

The FSA has written to the Treasury select committee ahead of its formal submission of written evidence, claiming the RDR will help stamp out up to £600m of misselling each year. The TSC called for written evidence in November on whether the RDR would meet its stated objectives of increasing access to advice, transparent and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm