Wrap up a new mortgage before Christmas

first direct urges homeowners to remortgage to a cheaper homeloan now and take advantage of lower monthly payments before this Christmas's bills hit their pocket.

In December 2009  total spending on credit cards was £10.7 billion, an increase of £400 million or 3.9% in just one month on November 2009's £10.3 billion, so January is the time for tightening belts when consumers are hit with the consequences of a Merry Christmas.

Richard Tolchard, Senior Mortgage Product Manager at first direct commented: "Now is a great time to give finances a lift by wrapping up a mortgage deal for just £99. With first direct's 2.19% two year tracker, homeowners can be enjoying lower monthly mortgage payments by the time their festive bills need paying. What's more, with first direct's legendary service the benefits will last longer than their Christmas hangover."

If a customer were to remortgage now to first direct's best buy 65% LTV 2yr Tracker repayment mortgage (currently tracking 1.89% above base rate) they could be benefiting from lower mortgage payments from February, when Christmas credit card repayments need to be made. For a £150,000 25 year mortgage reducing the rate by just 1% could reduce monthly payments by over £75 in the first month.