Barclays and Woolwich launch fee-free fixed deals
The range includes a two-year fixed rate with no application fee fixed at 4.89 per cent until 31 January 2008 and a five-year fix at 4.99 per cent until 31 January 2011.
Both products come with no arrangement fees, no early repayment charges beyond the fixed rate period and no higher lending charge when borrowing up to 95 per cent. There are no valuation or legal costs for customers remortgaging and switching lender.
It also offers flexible features – such as the ability to overpay, and existing mortgage customers are also eligible for the rates. They are both available through intermediaries.
Andy Gray, head of mortgages at the Woolwich, said: “We are continuing to see increasing demand for fixed rate mortgages and for people who value security and flexibility this is a great deal to take advantage of as it offers no upfront fees.”
Paul Hearnden, managing director of My Mortgage Direct, commented: “These are good products for borrowers looking for total flexibility and no extra penalties. Having said that, the Woolwich service is somewhat erratic and it seems to be pot-luck whether applications fly by without a hitch or are held up for long periods.”
James Cotton, mortgage specialist at London & Country, said: “As totally fee-free deals go, these are not that bad at all and stack up well against similar rates from the likes of Halifax and Alliance & Leicester. The lack of fees means these deals should appeal to first-time buyers and for those with smaller than average mortgages.”