first direct reduces 10-year fixed rate offset mortgage

first direct has reduced the interest rate of its highly competitive 10-year fixed rate offset Mortgage from 6.49% (6.9% APR) to 6.25% (6.6% APR).

The direct bank has also reduced the booking fee from £495 to £99 and removed the arrangement fee of £299. The rate is available from today, Friday 14 September and reverts to a very competitive SVR, currently 6.75%, after the fixed rate period.

Over 10% of first direct’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: “We’re finding that our customers are wanting to fix their mortgages repayments at the moment, and this new rate on our already competitive 10-year fixed rate offset offers long term security in an uncertain market.”

The first direct fixed rate offset Mortgage give borrowers:

highly competitive rate of 6.25% (6.6% APR)
£99 booking fee and no arrangement
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, no maximum loan
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
current exit fee £149