Remortgage applicants put off by fees, say first direct

Date:Wednesday 14th October 2009
Author: Max Freedman

When homeowners remortgage their property they are will be influenced by the size of the fee charged, according to first direct.

Head of mortgages at the organisation Jimmy Kelly made his comments following the launch of two fee-free offset tracker deals by the financial services provider.

One is available up to 60 per cent loan-to-value (LTV) while the other can be applied for at up to 75 per cent LTV, with the interest rates offered at 2.49 and 2.94 per cent above the Bank of England's base rate respectively.

The Bank's Monetary Policy Committee decided to keep the base rate at 0.5 per cent this month and will make their next decision on November 5th.

Mr Kelly pointed out that both new deals allow offset and unlimited overpayment, which he commented will offer flexibility to customers.

He added: "Our new offers are in direct response to the feedback we've had from customers looking to move to first direct."