First-time buyers can take on cheaper fixed-rate products

27/04/2007

A new range of mortgage products has been introduced by Woolwich, making fixed-rate mortgages affordable and cheaper.

The company are trying to offer first-time buyers a 95 per cent value via their selected property, into 2, 3 or even 5-year fixed-rate mortgage deals.

First-time buyers are looking to take advantage of this new deal Andy Gray, head of mortgages at Woolwich stated. Interest rates for 2 and 5 year fixed-rate mortgage loan offered by Woolwich has now been cut down to the bare minimum.

Figures from 5.99 per cent to 5.79 per cent however come with an application fee of £600. Interest rates on Woolwich’s product, 95 per cent loan to value mortgages decreased from a staggering 6.19 per cent to 5.99 per cent.

Head of mortgages, Andy Gray at Woolwich, commented: "There is usually an up lift in mover activity at this time of the year, and we are targeting those having smaller deposits, most often first-time buyers. At the 95% loan to value level we have effectively reduced the rate from 5.99 per cent to 5.79 per cent for both the 2 and 5 year so for the average loan that’s a reduction in interest payable of £1,200 over 5 years. This is good news for first-time buyers in an uncertain market."

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