The mortgage is guaranteed to stay at 0.23 per cent above base (current rate of 5.48 per cent) with no arrangement fee or early redemption charges. Consumers who are worried about future rate rises can take advantage of the ‘cap protection’ which guarantees the rate will not rise above 5.99 per cent for the first two years. This protection is available for a one off £595 fee which is well below many competitor application fees.

Andy Gray, head of mortgages for the Woolwich, said: “Fixed rates are still expensive in comparison to trackers and with SWAP rates heading ever higher they don’t look as if they are going to get any cheaper in the short term. This is why we have launched this unique product, track and cap if you like, with no lock-ins it gives consumers the best of both worlds – a market leading rate with a guarantee, so if rates go up you are protected and if rates head south you win.

“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. With this you still get all the benefits of a base rate tracker in terms of flexibility but with the benefit of protection for the first two years after completion.”

“Overall we believe this is the best mortgage available in the market. The lowest long term rate, a capped upper rate if you want, and at the same time flexibility to overpay, pay off the mortgage early, move house and re-mortgage.”

Key product facts on all Woolwich mortgages:
Available to all existing and new customers
For customers switching from another lender we will cover legal and survey fees
Maximum flexibility: overpay, underpay & payment holidays

At the same time we will be launching a market leading 10 year fix at 5.37 per cent and a two year discounted tracker at 4.99 per cent (base -0.26 per cent).

First ever ‘track and cap’ lifetime mortgage:
- Tracks at base +0.23 per cent for the life of the loan
- Option to pay £595 to guarantee the rate won’t increase above 5.99 per cent for first two years after completion
- No arrangement fees
- No early repayment charges or tie-ins
- Rate available up to 80 per cent of the purchase price
- Overpay by any amount at any point during the life of the mortgage
- For customers switching from another lender we will cover legal and survey fees
- Minimum loan size £50k
- Maximum loan size £500k

Market leading 10 year fixed rate mortgage:
- 10 year fixed at 5.37 per cent reverts to lifetime tracker (base +0.95 per cent)
- Low arrangement fee of £595
- Rate available for mortgages up to 80 per cent of the purchase price/valuation
- Another rate is available of 5.99 per cent up to 95 per cent of the purchase price/valuation
- Early repayment charge 6 per cent of the balance outstanding
- Customers can overpay by 5 per cent each year without penalty



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