Woolwich mortgage -10 year fixed deal will it be in serious demand?
New long term Woolwich mortgage products have been launched offering borrowers a 10 year fixed deal. However following in the footsteps of the N&P, who offered a sell out 10 year product, a new Woolwich mortgage product is being offered at 4.99 per cent with an application fee of £1,499.
It appears that the Woolwich may be overestimating the demand based on what happened with the N&P offer. The industry average rate on such long term deals was around 4.77 per cent with under £900 as an arrangement fee, the new deal does not seem to be offering much competition to other lenders offering 10 year deals but then they are few and far between.
Borrowers who looked for 10 year fixed deals 4 years ago, had around 124 products to choose from. Since this time long term fixed rates experienced a rapid drop in availability and popularity with just one being available to borrowers in March 2011. Since March last year the number of long fixed deals has grown again but there are still only 10 presently available. A Defaqto spokesperson commented saying that traditionally there is little demand for longer term fixed-rate mortgages, however as the N&P sell out deal shows, this maybe changing.
While N&P offered their mortgage directly, the Woolwich mortgage 10 year deal will be made available both directly and through its intermediaries. The Woolwich deal allows a 5 per cent overpayment to be made annually without penalty during the fixed-rate period and, those borrowers who are remortgaging get a free valuation plus either fee-free legal work or a £200 cash-back.
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