The best rate available on a Woolwich lifetime tracker through brokers is now 0.99 per cent above base rate. Woolwich says this makes it 1.08 percentage points better than the average two year fixed rate in the market, currently 7.07.
It is also cutting rates on offset and longer term fixes, as well as introducing a competitive three year fix rate.
At the same time it will be re-introducing 90 per cent loan to value fixed products to help customers with smaller deposits access Woolwich products.
Head of mortgages Andy Gray says: “The two year fixed rate market is hugely volatile at the moment. Many customers will be better served by other products such as the lifetime tracker, which offers a much lower rate than current fixed rates and has no application fee.
“Woolwich will also be cutting rates on its offset and five and ten year fixed rates as well as re-introducing a three year fixed rate at a competitive 6.49 per cent, well below the average two year fixed rate to offer certainty for those who would still rather fix.”