first direct launches lifetime tracker mortgage at 2.58%

first direct has announced the launch of its new market leading offset tracker which tracks 2.08% above the Bank of England base rate (currently 2.58%).  The lowest lifetime tracker and one of the few below 3%, the mortgage has a maximum loan to value of 65% and an arrangement fee of £999.

The new offset tracker arrives at a time when, according to the Bank of England, Britons repaid £600m of unsecured debt in October, more than any month since the bank started collecting the data. With paying down debt is now firmly on the nation's priority list, it seems people are using their spare cash and some savings to get rid of their more expensive debt.

In this time of debt reduction offset mortgages represent the perfect opportunity for savvy borrowers to have the best of both worlds.  first direct's new market leading offset tracker means borrowers have the freedom to offset savings against their mortgage (the equivalent to earning a higher rate of savings interest), but also the flexibility to keep their savings separate from their mortgage and use the cash to pay off expensive debt as and when they wish.

Jimmy Kelly, Head of Mortgages at first direct commented: "As a responsible lender we feel it's important to encourage our customers to use their money in the most cost effective way.

"The flexibility of the first direct offset tracker, plus the fact that you can keep all you money in separate accounts, makes it easier to keep on top of you finances and reduce your debt more quickly."