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Woolwich slashes rates and launches drop lock

Barclays is slashing the rates on its Woolwich mortgages by up to 0.21 per cent and introducing a drop lock facility for new customers from July 29.

The reductions are across the 80 per cent loan-to-value range, which includes a 0.21 per cent cut on a two-year fixed from 4.59 per cent to 4.38 per cent, a 0.1 per cent reduction on three-year fixed rates from 4.89 to 4.79 per cent and five-year 5.49 to 5.39 per cent.

The lender has also introduced a lifetime tracker at 80 per cent LTV at base plus 3.38 per cent with a £999 application fee.

The drop lock facility will be available to all new tracker and offset borrowers with Barclays. It will allow people who opt for a tracker or offset mortgages to switch to a fixed rate in the future without incurring an early repayment charge.

Barclays head of mortgages Andy Gray says: “”With speculation this week that UK interest rates are set to stay at record lows until 2014, the drop lock facility provides customers with peace of mind that they can go into a low tracker rate now and switch at a point in the future when they need greater security.”

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