Woolwich launches ten year fixed rate mortgage

The Woolwich has recently announced the launch of a ten year fixed rate mortgage that will cater for those that can put down a larger deposit.

Alistair Darling has been pushing for longer term fixed rate deals for some time now, and although the ten year term is not as long as the 20 and 25 year fixed rate terms that Darling is looking for, it provides another option for those looking for a longer term fixed rate deal.

However, the downside with the ten year fixed rate mortgage is that it has a 60% loan to value ratio, which means that those looking to opt for this deal will need to have a substantial amount of money to put down by way of a deposit.

The mortgage is therefore better suited to home movers who have the equity to use towards a deposit.

An official from the Woolwich said that the deal being offered was a competitive one, stating: “The mortgage market is hugely uncertain at the moment and lenders are continually re-pricing products.

However, the long-term swap market has steadied at lower levels and we have been able to put together a long-term product at a historically very competitive rate.”

The ten year fixed rate mortgage from the Woolwich comes with an interest rate of 5.29%, which is only slightly above the current base rate of 5.25%.