Woolwich cuts rates; Drop-lock added to mortgages

The price reductions mean the rate at which a Woolwich two-year fixed rate at 80% LTV is charged will fall from 4.59% to 4.38%. Its three-and five-year fixed rates will also come down slightly by 0.1% to be charged at 4.79% and 5.39% respectively. Woolwich will also introduce a ‘drop-lock' facility for all new borrowers taking out its tracker and offset mortgages. A ‘drop-lock' gives borrowers the option to switch from a variable rate onto a fixed rate at no extra cost, which can be very useful if interest rates start to rise. At the same time the lender will launch a lifetime trac...