Woolwich launch a hybrid fixed – tracker mortgage.

The Woolwich have launched an innovative new hybrid mortgage product combining a tracker mortgage with a fixed rate product. A tracker deal is offered to customers for the first 2 years after which it converts to fixed rate for the remaining 3 years.

The tracker mortgage product follows in line with the BOE base rate plus 2.99 per cent for the first 2 years and, for the final 3 years it reverts to a fixed rate mortgage at 4.29 per cent. The new product has a £1,299 arrangement fee and is made available for deals of up to 70 per cent LTV. The product has being introduced as part of the lender’s re-launch of its residential and buy to let range.

Other changes to Woolwich mortgage products include, an increase from 60 per cent to 70 per cent LTV for its 3 year fixed rate mortgage at 3.69 per cent and its 5 year fixed rate mortgage at 4.29 per cent. For its buy to let mortgage products, fees are to be set at £1,999 for deals up to £500,000 and £3,999 for deals over £500,000.

Barclays claim that their mortgage changes through the Woolwich, reinforce their commitment to the property market. The lender advises that they offer customers more choice and value combined into one innovative package. They believe that their ‘Future Fix’ could potentially offer borrowers the best of both worlds, tracker and fixed. Those borrowers previously put off by tracker mortgage deals may find this interesting new product a good compromise.