first direct launches two new highly competitive two-year fixed rate offset mortgages

Edited by the Insidemoneytalk editorial team Sep 5, 2007

first direct has launched two highly competitive two-year fixed rate offset mortgages priced at 5.59% (6.9% APR) and 5.99% (6.9% APR).

The rates are a limited offer and available from today, Monday 3 September.

Both deals revert to a competitive SVR of 6.75% (7.0%APR) and have a maximum loan-to-value of 80%.

Over 10% of the direct bank's customers now have offset mortgages choosing to make use of the financial benefits of linking day-to-day savings to their current account balances and mortgage.

Chris Pilling, first direct's chief executive said: "It's great to be able to offer our customers such competitively priced mortgages in the current market".

"Plus, our offset fixed rate mortgages are unique in their flexibility".

"Not only can customers move as many times as they like at no extra charge, they can overpay, underpay and redraw funds, without further approval, at a moment's notice and at the same great rate that they originally fixed the mortgage." The bank has also launched an industry first by creating a video podcast to explain the 'offset rule' and how customers can benefit from taking out an offset mortgage.

This can be accessed from its internet site at www.firstdirect.cominteractive The first direct fixed rate offset Mortgages give borrowers: two highly competitive rates of 5.59% and 5.99% fixed for two years (equivalent to 6.9% APR) the 5.59% fixed rate attracts an arrangement fee of £1499 and booking fee of ?99 the 5.99% fixed rate attracts an arrangement fee of £299 and a booking fee of £99 availability to move their mortgage to a new property during the fixed rate for free, as many times as they like reversion to an extremely competitive standard variable rate (SVR) -currently 6.75% (7% APR) - at the end of the fixed rate term maximum LTV is 80% minimum loan size is £15,000, maximum £300,000 the flexibility to make unlimited overpayments in either lump sums or regular payments no tie in to the SVR at the end of the term.

Borrowers are free to opt for another fixed rate current exit fee ?149 For further information please contact Amanda Brown on 0113 2766700 or email amanda.brown@firstdirect.com For further information about first direct's mortgages, consumers should call 0800 24 24 24 or visit www.firstdirect.com.