New deals 'help boost mortgage market'

Posted: 10 Jul 2008 13:25:27 GMT

A number of new mortgage deals are set to help boost the struggling mortgage market, new research has indicated.

A number of new mortgage deals are set to help boost the struggling mortgage market, new research has indicated.

The Woolwich has announced that it is cutting the rates of its Lifetime Tracker product from tomorrow (July 10th).

It is thought that the rate cuts will encourage customers to take advantage of fee free, fully flexible products when many people are waiting for deals on short-term rates.

The Woolwich has also said that it will be re-introducing its fixed-rate products, which include loan to value options of up to 90 per cent so that homebuyers with smaller deposits can take advantage.

"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," said Andy Gray, head of mortgages for Woolwich.

Woolwich is now offering 0.89 per cent above the base rate for its Lifetime Tracker with no fees or early repayment charges.

This comes after news today that estate agent Savills predicted that house prices in London would fall by 25 per cent by the end of next year.

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