New mortgage launched by First Direct

Date:Tuesday 1st December 2009
Author: Max Freedman

First Direct has launched a new lifetime tracker mortgage, which it calls a market leader.

The new product tracks at 2.08 per cent above the Bank of England base rate and currently stands at 2.58 per cent. It is available with a maximum loan-to-value of 65 per cent.

According to the bank, it is the lowest financial tracker available and one of the few below three per cent.

The product gives customers the chance to offset their savings against their mortgage while keeping the money separate to use to pay off their more expensive debts first.

Jimmy Kelly, head of mortgages at First Direct, commented that the flexibility of the offset tracker mortgage, coupled with the fact that money can be kept in separate accounts, simplifies finances for consumers, allowing them to keep on top of their finances and reduce their debt faster.

Last week, First Direct published research which found that 40 per cent of homeowners did not understand the benefits that come from offsetting their mortgages.