Direct Line launches a two-year fixed rate mortgage

Direct Line has launched a two-year fixed rate mortgage with a rate of 4.79% which has the added optional incentive of discounted home insurance and free home emergency cover for two years.

Direct Line is also continuing to offer its three-year fixed at 4.84% and its five-year fixed at 4.89%.

At the same time, the direct lender is also promoting its competitive two-year tracker of 4.5% which reverts back to Bank of England base pate plus 1.10%, currently 5.60%.

Direct Line believes people looking to remortgage at present are in the midst of a dilemma – whether to opt for the certainty and security of a fixed rate mortgage or choose a lower rate discount tracker, which mirrors the base rate.

Dave Dyer, commercial director, Direct mortgages, says: Fixed rate mortgages offer the security which many customers feel most comfortable with and of late, the two-year fixed rate has been the most popular type of mortgage in the country.

Tracker mortgages do not have the same level of certainty because they mirror the base rate and clearly if that moves up or down, then so does their tracker mortgage rate and therefore their monthly payment.

Our experience shows however, that tracker mortgages are increasing in popularity as some customers decide they offer better value over the two year term.

All of our Direct Line rates offer excellent value for money and choice for customers whether they are looking to purchase or remortgage. Our fixed and tracker deals offer great value at present, so people should decide which option suits them best.

In particular our five-year fixed and two-year tracker are some of the most competitive deals at present, but the market is continually shifting, so customers should move quickly to take advantage of any of our deals.

On top of the great mortgage deals, customers get even better value if they take up the home insurance discount and the free home emergency cover, which are entirely optional.