Competitive fixed rates to disappear for foreseeable future to be replaced by trackers according to

From: Barclays bank
Published: Fri May 12 2006

Rapidly increasing SWAP rates mean that fixed rate mortgages are likely to become uncompetitive in the next two weeks with the best value to be found in tracker or discounted rates says the Woolwich. This has led Woolwich to launch its new range focusing heavily on tracker mortgages.

Andy Gray, head of Woolwich mortgages, commented: "Rapidly increasing SWAP rates, pushed higher by a view that base rates will rise this year, are having the effect of making fixed rate products increasingly expensive to put together, making the rates uncompetitive. A couple of weeks ago we launched a market leading life time tracker at 0.19 per cent above base and this week we are launching a two year discounted tracker at -0.12 per cent below base. In the current market it will soon be impossible to come anywhere near this on a fixed rate."

Key features of the two year discounted tracker mortgage are as follows:
- For loans up to 75 per cent loan to value, the initial rate is 4.38 per cent.
- Above 75 per cent loan to value the initial rate is 4.79 per cent.
- After the two years the discounted tracker reverts to base +0.95 per cent for the life of the mortgage.
- Arrangement fee £595.
- Early redemption charge applies for two years and will cost one per cent of the balance.
- Woolwich operates switch and save deals for re-mortgagers where the legal fees and valuation costs are paid for.

Alongside the two year discounted tracker mortgage deal Woolwich will continue to provide a market leading lifetime tracker mortgage at 0.19 per cent above base rate for life, with no arrangement or redemption fees.
- Key features on all Woolwich mortgages:
- Deals available to both new and existing borrowers
- Same deals available to new borrowers wanting to re-mortgage under our Switch & Save package where no valuation or legal costs are incurred
- No higher lending charge or early repayment charge beyond the fixed, capped or discounted period.
- Daily interest
- Flexible features such as overpaying by 10 per cent per annum without incurring any early repayment charge
- Fully portable
- Available up to 95 per cent loan to value

Customers can find out more about all our new and existing mortgages by visiting their local Barclays or Woolwich branch, via the internet at Barclays banking or by phoning 0845 607 1111.

For further information contact:
Emma Austin
0207 116 6145
Company: Barclays bank
Contact Name: samqam
Contact Email:
Contact Phone: 01315612251

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