New mortgages from Woolwich

Woolwich has cut its tracker mortgage rates and introduced new three-year products in a move it claims will help "boost" the mortgage market.

The bank has also re-introduced fixed-rate products offering a loan-to-value option of up to 90 per cent in a bid to help borrowers with smaller deposits take advantage of its "competitive" rates.

According to Woolwich, the best rate available on its Lifetime Tracker product is now 0.89 per cent above the base rate - making it 1.18 percentage points better than the average two-year fixed-rate in the market.

Andy Gray, head of mortgages for Woolwich, said: "The two-year fixed-rate market is hugely volatile at the moment.

"We have decided that our customers will be better served by other products such as the Lifetime Tracker which offers a much lower rate and full flexibility to change to another rate at a later time."

A three-year fixed rate of 6.49 per cent is also to be re-introduced by the bank.

Bank of England figures released last month revealed the number of remortgage approvals had fallen from 100,000 in April to 90,000 in May.

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