First Direct offset lifetime mortgage welcomed by

Date:Wednesday 2nd December 2009
Author: Max Freedman

Price comparison site has welcomed the launch of First Direct's offset lifetime tracker mortgage.

Commenting, Hannah-Mercedes Skenfield, mortgages channel manager at the website, said that it is "encouraging" to see the launch of another product that allows consumers to manage their finances in a manner that makes good use of savings capital.

She also said that the tracker, which is set at 2.08 per cent above the Bank of England base rate of interest, will appeal to mortgage customers able to afford the "hefty" 35 per cent deposit that is required.

Ms Skenfield concluded by noting that offset mortgages can be useful for people who are self-employed and those who periodically accrue large bonus payments that they do not intend to spend immediately.

The Bank's Monetary Policy Committee has maintained the base rate of interest at its current level of 0.5 per cent since it was lowered to that level in March.