Barclays Mortgage Arm Woolwich Launch Fixed Rate Deal at 3.99%

Barclays (LON:BARC) and mortgage arm Woolwich are launching from tomorrow a new one-year fixed mortgage deal called “fix and track” at a rate of just 3.99 percent, one snag, you do have to have 40 percent deposit.

The 3.99 percent mortgage rate will then revert after 12 months to a lifetime tracker rate of 1.99 percent over the Bank of England base rate which is currently at 3 percent taking the lifetime rate to 4.99 percent.

Barclays who is the sixth largest mortgage lender have said the same product will be available to homeowners with smaller deposits but at a higher rate of interest.

If you took out a “Fix and track” mortgage with Woolwich or Barclays you would be locked into the deal for 3 years, if you redeemed the mortgage within the three year period you would be liable to pay 1 percent of the mortgage loan value as a redemption fee.

Banks such as Abbey, Lloyds TSB and Alliance & Leicester have all launched new two and three year fixed rate deals this week of around 5 percent, this is largely to do with the falling costs in wholesale borrowing which funds fixed-rate lending. The two-year swaps fell today to their lowest level since July 2003 at 3.61 percent.

Source: Timesonline Swarmed movies