View more on these topics

Woolwich track and cap ‘a gimmick’, says Cornell

Woolwich’s track and cap mortgage designed to protect against interest rate rises has been branded a gimmick by a leading broker.

The lifetime tracker stays at 0.23 per cent above base rate with a cap of 5.99 per cent for the first two years.

With base rate currently at 5.25 per cent, three further rises of 25 basis points each would trigger the cap.

Many commentators are predicting at least one more rate rise this year but Bradford & Bingley has suggested that base rate could return to 5 per cent in a year.

Hamptons Mortgages technical director Jonathan Cornell says: “It is a bit of a gimmick but not horrendous. It is unlikely the cap would come into play in the next two years but it is always nice to have the safety. Still, Woolwich has become much more innovative recently.”

Woolwich head of mortgages Andy Gray says: “Most traditional capped-rate mortgages are not linked to a base rate tracker so it can be hard to get any real benefits when rates start to fall. We believe this is the best mortgage available in the market.”


Mortgage firms braced for future base rate rise

The mortgage market has got a breathing space after the Bank of England monetary policy committee voted to hold base rates at 5.25 per cent last week.Many commentators say the decision is only putting off an inevitable rise as inflationary pressures are still in place.The market had been hoping to avoid another rise in February […]

Left out in the cold

Worst attempt to get coverage on the back of the recent snowy conditions has to go to those normally reliable folk at Wriglesworth.The lender could still do business despite the cold snap that saw many people up and down the country confined to their homes last week. Wow.The release even featured news of a snowball […]

Imla pledges more support for members

Brokers and packagers have been promised greater support from the Intermediary Mortgage Lenders’ Association, which has admitted that it has so far failed to represent its members adequately in the market.Former Council of Mortgage Lenders’ deputy director general Peter Williams was appointed Imla executive director last September, and he promises that the trade body will […]

The Perils of Passive Investing

The era of loose monetary policy created an environment that rewarded passive investors in the US. However, with the US raising interest rates for the first time since 2006, Felix Wintle explains why he believes active investing will be more important than ever. In the video Felix discusses: The rising cost of capital and its […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment