New tracker launched by first direct

A market leading offset tracker mortgage has been launched by first direct.

The product, which tracks the bank of England base rate plus 2.48 per cent for the life of the loan, is currently priced at 2.98 per cent 3.2 per cent APR.

Unlike other trackers currently available, it also offers a maximum cap of 4.99 per cent until 2012.

The deal has a maximum loan to value of 75 per cent and an arrangement fee of £1,499.

Jimmy Kelly, mortgage manager for first direct, said the firm wanted customers to be able to take advantage of the current low base rate and also enjoy the security of a low rate over the next few years.

He added: "It's great to be able to offer this unique mortgage at the moment with the added benefits of being able to offset."

Last week, Stephen Smith of Legal and General claimed that the mortgage market is currently being dominated by fixed-rate products as homeowners capitalise on low interest rates.

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2009-07-03 12:03:54 © Moneyextra.com