New first direct mortgage announced

Date:Thursday 2nd July 2009
Author: Susanna Kavka

A new first direct mortgage has been rolled out as part of the firm's Summer Sale.

The lender is offering a tracker mortgage currently priced at 2.98 per cent which is capped at 4.99 until 2012.

Available at a maximum loan-to-value (LTV) of 75 per cent, the product has an arrangement fee of £1,499.

Commenting on the offering, first direct's mortgage manager 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 per cent for the next three years."

He went on to describe the product as a "unique mortgage", which has the benefits of being able to offset.

In May, Leeds Building Society launched a new two-year fixed-rate mortgage at 3.4 per cent. It was available at 75 per cent LTV, with a version up to 80 per cent LTV charged at 4.99 per cent.