first direct launches 2 new fixed rate offset mortgages
Published: 18 July 2009 By MoneyhighStreet Staff Leave a Comment
first direct, part of HSBC, has launched 2 new fixed rate offset mortgages with 2 and 3 year terms.
An offset mortgage allows credit balances to be offset against the mortgage.
The new first direct fixed rate offset mortgages are
- 2 year fixed – 3.34% with up to 60% LTV. There is a £999 arrangement fee and £499 fixed rate booking fee
- 3 year fixed – 4.24% with up to 60% LTV. There is a £499 arrangement fee and £499 fixed rate booking fee.
The minimum loan size is £30,000.
Whilst early repayment charges apply during the fixed rate period, there is no tie in to the SVR at the end of the term.
Mortgage manager for first direct, Jimmy Kelly, said ‘Mortgage rates are moving around a lot at the moment, however, we always aim to be one of, if not the leading rate.’
first direct also have a Capped Tracker mortgage which currently has an interest rate of 2.98% – it tracks the Bank of England base rate + 2.48%.
As a capped tracker mortgage it means that until 31 August 2012 the rate won’t go above 4.99%, the capped rate.
In this way customers can benefit from a low mortgage rate whilst the Bank of England base rate remains low but know that even if the base rate rises their mortgage rate will not go above 4.99% for the agreed period.