Woolwich announce new low-fee, fixed-rate products up to 75% loan-to-value
Author: Andy Bedford » Publish Date: 3 December 2009
The Woolwich announced several new fixed-rate products yesterday, which herald the return of low-fee, low-rate mortgage products to the market, and are a pivotal moment in the UK’s turn from recession to recovery.
The rates, which include a two-year fixed at 3.89% available up to 70% loan-to-value, and 4.09% up to 75% loan-to-value, have an application fee of just £199, free valuation and legal work on remortgages or £200 cash back towards legal costs if using your own solicitors. Early repayment charges apply of 3% until 31/01/2012, and APR for both products is 2.8%.
They have also included a three-year fixed product at a similarly competitive rate.
That is a big departure from the glut of products currently offering headline rates with either £995 or even 2% arrangement fees and will kickstart the lending industry back into competitive pricing with more than just on-paper rate cuts.
The products are also available on new purchases and equally competitive in that space, although standard valuation and legal fees will apply on purchases.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. We do not usually charge a fee for mortgage advice, although you may pay up to 1.5% of the loan amount. Some buy-to-let and commercial loans are not regulated by the Financial Services Authority.