The 10-year fix has been cut by 30 basis points, the five year by 26 basis points and the two year by 20 basis points. Customers switching from another lender can use Woolwich Switch & Save package with no valuation and legal costs.
Borrowers can overpay up to 10% per annum without any charges during the fixed rate period for on two year and five year fix rates and for 10 year fix rates, they can overpay up to 5% per annum without any charges during the fixed rate period.
Andy Gray, head of mortgages for the Woolwich, said: SWAP rates have been coming down since the beginning of December but there is still a lot of uncertainty in the market overall and fixed rates have therefore been slow to follow. However, further recent falls mean that we are able to pass on those cuts to customers in a range of fixed rates that are as keenly priced as anything in the market.
The overall economic outlook means that there are still inflationary pressures in the UK economy and therefore although the overall trend in interest rates is down there is a little more uncertainty as to how quickly they will fall. We therefore think over the next few weeks there will be an increase in demand for fixed rates over trackers, especially for those that are competitively priced.
