first direct launches new two-year fixed rate offset mortgages

first direct has launched two market leading two-year fixed rate offset mortgages priced at 5.49% (6.9% APR) and 5.99% (6.8% APR).

The rates are a limited offer and available from today, Thursday 27 September.

Both deals revert to a competitive SVR of 6.75% and have a maximum loan-to-value of 80 per cent.

The direct bank has introduced two new products to give customers the chance to choose the best balance of rate and arrangement fee to suit them.

Over 10% of the direct bank’s customers now have offset mortgages choosing to make use of the financial benefits of linking day-to-day savings to their current account balances and mortgage.

Chris Pilling, first direct´s chief executive said: “first direct are leading the way in the world of offset mortgages with great rates matching and beating the non offset options. There is no reason why customers shouldn’t benefit of making their savings and current account balances work hard to reduce their mortgages.”

Plus, our offset fixed rate mortgages are unique in their flexibility. Not only can customers move as many times as they like at no extra charge, they can overpay, underpay and redraw funds, without further approval, at a moment´s notice and at the same great rate that they originally fixed the mortgage.”

The first direct fixed rate offset Mortgages give borrowers:

two market leading rates of 5.49% (6.9% APR) and 5.99% (6.8% APR)
fixed for two years
the 5.49% fixed rate attracts an arrangement fee of £1499 and booking
fee of £99. Minimum loan size is £15,000 and maximum £300,000.
the 5.99% fixed rate has no arrangement fee and a booking fee of £99.

Minimum loan's size £15,000 and there is no maximum loan.

availability to move their mortgage to a new property during the
fixed rate for free, as many times as they like
reversion to an extremely competitive standard variable rate (SVR) - currently 6.75% at the end of the fixed rate term
maximum LTV is 80%
minimum loan size is £15,000, maximum £300,000
the flexibility to make unlimited overpayments in either lump sums or regular payments
no tie in to the SVR at the end of the term. Borrowers are free to opt for another fixed rate
Mortgage administration closure fee £149