First Direct launches tracker at 2.58%
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First Direct has launched what it says is the UK’s lowest lifetime tracker at 2.58%
The offset tracker from the HSBC subsidiary tracks 2.08% above the Bank of England base rate.
It is available at up to 65% LTV and carries an arrangement fee of £999.
First Direct says it has launched the product as reducing debt appears to a priority among the British public, with borrowers using their spare cash to pay down more expensive debt.
Jimmy Kelly, head of mortgages at First Direct, says: “As a responsible lender we feel it’s important to encourage our customers to use their money in the most cost effective way.
“The flexibility of the First Direct offset tracker, plus the fact that you can keep all you money in separate accounts, makes it easier to keep on top of your finances and reduce your debt more quickly.”
Readers' comments (1)
Ketan Yadav - Avenue & Co Private Finance | 1 Dec 2009 11:59 am
A great deal but it has limitations - of course!
These are:
1. Lender will not take into account any bonus payments or overtime - at all.
2. Max income multiples are 3.5 x single or 2.75 x joint income.
3. Max ceasing age for mortgage term is 65.
4. Min 3 yrs accounts for self employed.
5. Max 65% LTV.
There are lenders offering offset at 2.97%, with 5 x Joint income to 70% LTV. By the time you offset, the net interest rate is around 1.97%.
Once again a headline grabber and a good offset rate indeed - if you can meet the income multiples and LTV of 65%. - that will be less than 50% of properties in the UK.
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