View more on these topics

First Direct launches three-year fixed rate offset mortgage

First Direct has launched a three-year fixed rate offset mortgage at 5.39%.

The rate is a limited offer and is available from today, Friday June 30. The three-year fixed deal reverts to an award winning SVRof 5.50% and has a maximum loan-to-value of 80%.

In addition to the great rate, the mortgage has an offset facility which links day-to-day savings and current account balances to the mortgage, so customers only pay the interest on the difference.

This reduces the total amount owed, meaning that less interest is paid, for example, someone with a 100,000 mortgage and 20,000 in savings would only pay interest on 80,000.

A typical couple with a 102,800 mortgage and an average savings balance of 5,159 each could save as much as 294.42 in just one year by switching to an offset from a mortgage paying the same rate of 5.39%.

Chris Pilling, first directs chief executive, says: Fixed rate home loans have proved a huge hit with homeowners. In fact, seven out of every 10 is now a fixed rate compared to just 10 years ago where it was less than two in 10.

Homeowners are telling us that they want the comfort of a fixed rate which is why well continue to launch such great deals.

Recommended

Untested HIPs could harm the UK economy

There are lots of advantages to Home Information Packs. Energy certification is one. All the legal work in one packet upfront is another. Access to the database of Home Condition Reports is a third, allowing lenders to speed up the mortgage offer process by moving to an automated valuation model for most applications. And as […]

PMPA launches Rooftop rent-to-buy mortgage

The Professional Mortgage Packagers Alliance has launched an exclusive first-time buyer product from Rooftop Mortgages that uses 12 months proven rental payments as the affordability criteria to set the loan size, subject to an upper income multiple limit of 5.5 + 1/ 3.75 joint. Other product features include a maximum LTV of 90% and a […]

Occupation not a factor in Post Office policy

The Post Office and AXA Insurance UK have launched a new Payment Protection Insurance called Lifestyle Protection cover. Under the new policy profession is immaterial, providing quick and easy access to cover. Alan Cook, managing director of Post Office, says: “There are widespread concerns that people taking out payment protection insurance are being unfairly treated. […]

Advantage finally unveils plans to become sole lender

Advantage, which is owned by US banking giant Morgan Stanley, has officially announced its intention to become a sole lender by the end of the summer.The company is currently in the process of notifying all lenders, networks and brokers. Keith Dearling, managing director of Advantage, says: Morgan Stanley purchased Advantage Home Loans in December 2005 […]

Nigeria cover image - thumbnail

White paper — Nigeria International Insights

Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.

Newsletter

News and expert analysis straight to your inbox

Sign up