Woolwich deals for buyers new and old

Woolwich has launched a set of mortgage deals tailored to the specific needs of prospective homeowners at both ends of the buyers' market, from first-time buyers looking for loans worth up to 95 per cent of the purchase price to professionals looking for lifetime tracker deals.

The new first-time buyer product offers a fixed interest rate for two years, satisfying first-timers' need for "complete stability if rates continue to rise" as some financial analysts predict, noted Woolwich's head of mortgages, Andy Gray.

The interest rate on the first-time buyer deal is fixed at 6.29 per cent until November 2009.

By contrast, the different priorities of customers targeted by the lifetime tracker deal, which charges interest at the Bank of England base rate plus 0.17 per cent, are taken into account, with the option to reduce mortgage debt with lump sum payments and no early repayment charge, for example.

"Consumers at the lower and top end of the market have very different requirements when seeking a mortgage," Mr Gray stressed.

Meanwhile, the British Bankers' Association has revealed that the total number of mortgages approved in July dipped slightly by one per cent compared to 12 months previously, signalling subdued demand.

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