'Win-win' mortgage offer from first direct

Date:Friday 18th September 2009
Author: Susanna Kavka

A win-win mortgage is being offered by first direct which it claims will give people the benefit of both a fixed-rate and a tracker deal.

Jimmy Kelly, head of mortgages at the organisation, pointed out that people are currently worried about when they should be switching from their variable or tracker rate to a fixed-rate mortgage.

He noted that its fixed-rate offset mortgage deal lets customers have a low fixed rate while the market is low, but then they can overpay and reduce the term of the deal without paying any extra when the economic climate changes.

"The benefit of choosing first direct's market leading offset is that customers no longer have to decide between the security of fixing a great rate and flexibility. They can have both," Mr Kelly said.

Current interest rates being offered by the lender for its two-year fixed-rate offset mortgages range from 3.49 per cent for 60 per cent loan to value, to 3.94 per cent for 75 per cent loan to value, although they both have £499 arrangement fees.

This week, moneysupermarket.com warned customers to be aware of the size of arrangement fees on mortgage deals.