Woolwich is introducing two new five-year capped rate mortgages with no tie-ins.
The bank is offering a cap at 6.89 per cent for up to 90 per cent LTV as part of its flagship Open Plan "total borrowing solution". Open Plan customers can transfer existing debts to under one roof at 7.2 per cent APR with this product.
The Open Plan Five-year Cap lets borrowers make part redemption each year of up to 10 per cent of capital outstanding without penalty.
The bank is also offering a traditional five-year cap at 6.99 per cent for up to 95 per cent LTV or to 90 per cent for remortgages.
Woolwich will cut monthly payments on these products if its SVR falls below the rate of the cap.
A redemption charge of six months' gross interest for the period of the cap runs on both schemes. Both have application fees for borrowers of £295. These products extend Woolwich's existing product range which remains unchanged.
IFA procuration fees vary according to individual arrangements with Woolwich.