After announcing changes to its credit card rates, Barclays has revealed plans to cut its mortgage charges.
Barclays is to cut interest rates for customers with Woolwich tracker-rate mortgages.
The lender announced that all Woolwich tracker mortgages will be reduced by 0.5 percent from March 1st following the Bank of England's move to cut the base rate to a historic low of one percent last Thursday.
New customers saw the change almost immediately, with Woolwich offering the reduced rate of just one percent to borrowers on Friday (February 6th). All Woolwich mortgage holders could benefit from the price drop, with Barclays explaining that fixed-rate mortgages revert to tracker rates after the specified term has elapsed.
Woolwich standard variable rate (SVR) mortgage holders are also set to benefit form the cut. Borrowing will be reduced from 4.99 percent to 4.49 percent from March 1st.
Mark Parsons, managing director of current accounts, savings and mortgages at Barclays, explained that this latest initiative is designed to ease the mounting pressure felt by homeowners.
"Today's move to reduce mortgage payments is good news for millions of customers and augments the ongoing measures Barclays is taking to help customers with their finances," he said.
Adrian Coles, director general of the Building Societies Association, said last week that this month's drop in the base rate would do little to benefit borrowers if mortgage providers fail to pass on the relief to customers.
