Woolwich is offering a 10-year fixed-rate mortgage at 5.29 per cent up to 60 per cent loan to value.
The loan has a £995 fee and there is a 6 per cent early repayment charge in the fixed period. Woolwich says the product will help boost the availability of competitive longer-term mortgages at a time of volatility in the market.
Council of Mortgage Lenders’ figures show that over 1.7 million borrowers will be coming off fixed rates this year. Woolwich says the vast majority of these people are on rates below the 5.25 per cent bank base rate whereas most current mortgage products are above base rate, leaving a potential funding gap for millions of borrowers.
Head of mortgages Andy Gray says: “The mortgage market is hugely uncertain at the moment and lenders are continually repricing 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.”