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first direct tracker mortgage at 1.49% above base rate

23rd December 2010 Print

first direct has launched its lowest ever mortgage rate. At 1.49% above base rate (current pay rate 1.99%) for two years, it’s an amazing deal for many homeowners sitting on a competitor's SVR. There’s a £999 booking fee, with the option to reduce the fee to just £99 on agreeing to pay 1.69% above base rate (2.19%) for the first 2 years.

What's more, as part of its new ‘Winter Offers’ running from 23 December until the end of January, first direct will cover the normal costs associated with changing lender.  The direct bank will pay for:

one standard valuation
the legal costs associated with re-mortgaging
the enquiry fee charged by their existing lender

All the customer has to pay to move their mortgage to first direct is the arrangement or booking fee which could be as little as £99.

Richard Tolchard, Senior Mortgage Product Manager at first direct commented: "Now is a great time to give finances a lift by snapping up a remortgage deal for as little as  £99.  What's more, with first direct's legendary service the benefits will last longer than their Christmas hangover."

If a customer were to remortgage to first direct's  65% LTV 2yr Tracker repayment mortgage (currently tracking 1.69% above base rate) with a £99 arrangement fee they could see the benefit of moving within as little as two months.  For example for a £150,000 25 year mortgage, reducing their mortgage rate by just 1% could reduce monthly payments by over £75 each month.  Consumers will have covered the £99 cost of switching by the second month meaning they’re quickly able to enjoy their lower monthly payments.