first direct launches new base rate tracker mortgages

first direct has launched two new market leading base rate tracker mortgages available from today, Friday 5 December.

The Offset Base Rate Tracker Mortgage tracks the Bank of England base rate for the life of the loan. It is priced at 1.49 percent above the base rate and is currently 3.49 percent (APR 3.6 percent). The mortgage has a £599 arrangement fee and maximum loan to value of 80 percent.

The offset facility is of particular benefit for people wanting to make the most of their savings. By using the facility customers reduce the total amount owed on their mortgage and therefore have less interest to pay. For example, someone with a £100,000 mortgage and £10,000 in savings would only pay interest on £90,000 of the outstanding loan.

The Life Tracker Mortgage is a capital repayment mortgage which tracks the Bank of England base rate for the life of the loan. It is priced at 1.69 percent above the base rate and is currently 3.69 percent (APR 3.8 percent). The mortgage has a £399 arrangement fee and maximum loan to value of 80 percent.

Matt Colebrook, first direct's chief executive said: "We've consistently been offering best buy mortgages in 2008 and these two new mortgages are no exception. We're also passing on the full base rate cut of 1 percent from January 2nd which makes our standard variable the lowest in the industry moving from 4.69 percent to 3.69 percent."