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Five star frenzy for first direct borrowers

Five star frenzy for first direct borrowers

Category: Mortgages

Updated: 18/01/2010
First Published: 14/01/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

first direct has caused a stir in the variable rate mortgage market with the launch of a variable tracker rate with no redemption penalty attached.

Despite also offering a new lower rate of 2.58% for term, the product still remains available at 65% loan to value and its fee is unchanged at £999.

Available to first time buyers, home movers and those remortgaging, the deal comes with an offset option allowing overpayments, underpayments and agreed payment holidays.

For those remortgaging, there is also an incentive of free legal fees in England and Wales or a £400 rebate in Scotland or Northern Ireland.

An excellent option for borrowers able to provide the 35% deposit required, this fantastically flexible product fully deserves a maximum five out of five Moneyfacts stars.

"We understand that the public are waiting to see what will happen to the Bank of England base rate over the coming year before making a decision on their mortgage," said Jimmy Kelly, head of mortgages at first direct.

"We're confident that our five star Offset Tracker, which beats the majority of SVRs available at the moment, is a great way to do this without the risk of people seeing their payments rocket if the base rate increases."

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