first direct, part of HSBC, has launched a new offset tracker mortgage with the added security of a capped interest rate.
The new tracker mortgage tracks the Bank of England base rate + 2.48% for the life of the loan.
The good news though is that the mortgage has a capped rate of interest of 4.99% until 2012.
The capped rate of interest makes this tracker stand out as it is not available on other tracker mortgages are currently available.
There is a maximum LTV of 75% and there’s a £1,499 arrangement fee.
It is only available to new customers.
Mortgage manager for first direct, Jimmy Kelly, said ‘We wanted customers to be able to take advantage of the current low base rate and offer the security of knowing that their mortgage rate won’t go above 4.99% for the next three years.’