first direct launch best buy offset tracket at 1.89% above base rate

first direct has launched a new best buy offset tracker mortgage which tracks the Bank of England base rate plus 1.89% (currently 2.39%).  The mortgage requires a 65% loan to value and has an arrangement fee of £999.

Jimmy Kelly, Head of Mortgages at first direct commented:

“It’s great to be able to offer another best buy mortgage rate.  Not only do we have a fantastic rate, but customers also have the benefit of the offset facility.  It’s a great opportunity for customers to either reduce their monthly outgoings or the term of their mortgage. 

“Although the economy finally stopped shrinking in the last quarter, we know that people still feel it’s important to be able to reduce their debt more quickly.”

Research from first direct shows that many home-owners still do not understand the benefits of offsetting - just two in 10 (21 per cent) see offsets as a way they can save money on their mortgage.  And close to half (48 per cent) admit they don't understand the basic principle.

Ends

Notes to Editors

For further information please contact Amanda Brown on 01132 766700 or Amanda.brown@firstdirect.com

 The key features of first direct's offset tracker mortgages are:

• financial benefit of offsetting any credit balances against the mortgage
• customers don't receive interest on their linked savings with an offset Mortgage, instead reducing the amount of interest on their borrowings, they don't have to pay tax on their savings
• availability to move the mortgage to a new property, as many times as they like without any product fees
• ability to redraw funds at the same rate throughout the term of the mortgage, back to the original mortgage limit
• minimum loan size is £30,000
• maximum loan size N/A
• the flexibility to make unlimited overpayments in either lump sums or regular payments
• a valuation fee will apply which is based on value of the property
• not available for "buy-to-let" or "right-to-buy" properties
• Available for both purchase and remortgage
• £149 closure fee applies

All research was conducted by first direct in conjunction with 3000ft Strategic Insight.  This combined original research from a nationally representative survey, with data from the 3000ft trends base, including analysis of data from the Bank of England and the Council of Mortgage Lenders.  The nationally representative survey was conducted on 1,000 home-owners and prospective home-buyers using an online sample between 8^th and 14^th March 2009.  The online survey was conducted by PureProfile.