first direct launches new fixed rate offset mortgage
2 March 2009 By MoneyhighStreet Staff 1 Comment
first direct, part of HSBC, has today announced the launch of a new two year fixed rate offset mortgage at a rate of 2.99%.
This new offset mortgage, at an interest rate of 2.99% (3.7% APR) is market leading.
The set up fees are quite costly; £599 booking fee and £299 arrangement fee.
As with many mortgage providers, first direct have also upped the deposit amount required for this offer. The minimum deposit is 25% of the value. In other words the maximum loan to value (LTV) is 75%.
first direct’s Mortgage Manager, Jimmy Kelly, said ‘This product is a market leader and we think it will be very popular particularly as our customers are extremely savvy when it comes to knowing how to make the most of their money. More and more are understanding the huge benefits of offsetting their mortgage.’
According to first direct, more than 10% of their customers now have an offset mortgage.
This offset mortgage is available for house purchases or remortgages and for new and existing first direct customers.
Other mortgage providers are introducing new fixed rate offset mortgage offers, including the Yorkshire Building Society.
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