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Mortgage News
New offset mortgages from First Direct - 17/01/2008
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A total of two new offset mortgages from First Direct are now on the market.
From January 17th, the financial services provider is offering homeowners the option to take out a two-year fixed rate offset mortgage or a five-year fixed-rate offset mortgage.
Priced at 4.75 per cent, the two-year deal equates to a 6.5 per cent annual percentage rate (APR), while the longer arrangement is priced at 4.99 per cent, equivalent to 6.1 per cent APR.
According to First Direct, the attraction of these mortgages lies in their flexibility. Claimed to be unique by First Direct, the products offer customers the chance to switch as many times as they wish without paying a mortgage transfer fee, as well as the freedom to overpay, underpay and redraw funds without giving notice.
Following the fixed-rate term's end, the mortgages revert to a standard variable rate (SVR) described as "extremely competitive" by the provider - it currently stands at 6.5 per cent.
The mortgages are available on maximum loan-to-value of 80 per cent, while the maximum size of the loan is £300,000 and the minimum £15,000.
First Direct points out that there is no compulsion to revert to the SVR and customers are free to switch to another fixed-rate mortgage.
The bank cut its SVR from 6.75 per cent to 6.5 per cent following the Bank of England's base rate reduction in December 2007.
© Adfero
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