New two-year fixed rate offset mortgage from first direct

On Thursday 13 December 2007 first direct launched a market-leading two-year fixed rate offset mortgage priced at 4.99% (6.6% APR). The rate is a limited offer.

Following the fixed rate period, it reverts to a competitive standard variable rate of 6.50% - a full 1% lower than the equivalent rate from Halifax.

Over 10% of the direct bank’s customers now have offset mortgages, enjoying the financial benefits of linking day-to-day savings to their current account and mortgage.

The first direct fixed rate offset mortgage also gives borrowers ability to move their mortgage to a new property during the fixed rate as many times as they like with no mortgage transfer fee to pay. The minimum loan size is £15,000, the maximum is £300,000 and there is the flexibility to make unlimited overpayments in either lump sums or regular payments.

There will be no tie in to the SVR at the end of the term. Borrowers are free to opt for another fixed rate. The mortgage has an arrangement fee of £999 and booking fee of £499.

First direct immediately passed last week’s Bank of England base rate cut to its variable rate mortgage customers.