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Woolwich sets the pace with lifetime tracker

The Woolwich is offering a lifetime tracker which will track at 0.01 per cent below the base rate for two years, making it the market-leading lifetime tracker.

John Charcol senior technical director Ray Boulger says Woolwich is brave for taking a different approach to other lenders and says the new product is the most competitively priced lifetime mortgage.

The mortgage, which reverts to a lifetime tracker at 0.17 per cent above base rate after the initial two years, has no early repayment charge but the application fee is 1,495.

Boulger says it illustrates the difference between Woolwich, which is adopting a robust retention strategy, and other lenders, which focus on short-term offerings.

He says: “There is a dichot-omy between lenders saying they want to take a long-term approach and between the products they offer in gen-eral, which are designed to do the opposite. The vast majority of products are for two years despite lenders saying they are looking for the nirvana of retention strategies.

“I would not expect a mad rush of lenders following Woolwich but if anyone did, then Nationwide would be my best guess.”


Henderson expands its horizons

Henderson Global Investors is launching the Horizon Pan-European Alpha Plus fund, which will bridge the gap between long-only funds and hedge funds.

The large lady sings

The time is right for large-cap investment to ensure growth and a strong dividend at a minimal price

The wrap race

A new year brings new opportunities and it is time for some predictions. One I am confident about making is that 2007 is the year when wrap could become a mainstream part of financial planning. There is far broader recognition of the potential of such products and services than ever before but the key question is, can wrap deliver?


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