Fixed rate offset mortgages – first direct
first direct, the internet and telephone bank, has recently launched a new range of fixed rate offset mortgages.
All the new mortgages are available to new and existing customers for both house purchases and re-mortgages.
Jimmy Kelly, first direct‘s mortgage manager commented, ‘Offset mortgages are starting to be recognised as a great way for people to have flexibility and make the most of their money.’
For example, with our 2.99% fixed rate, customers would need to receive an interest rate equivalent to 3.80% AER on their savings account for a 20% taxpayer and 5.10% for a 40% taxpayer for them to achieve the same benefit as offsetting any credit balances they have against their mortgage.’
The new mortgages offer customers the chance to choose their terms depending on whether they are looking for lower rates or upfront fees.
Recent research from first direct has revealed some interesting offset mortgage trends:
- The total value of offset mortgage lending has trebled since 2005
- The share of new mortgage lending for offset mortgages increased by 16 per cent in the final quarter of 2008, and looks set to continue rising
- At current rates of increase, offset mortgage lending will reach record levels during 2009
- Offset mortgages account for 10 per cent of the value of new mortgage lending during the past year.
first direct is a division of HSBC Bank plc.
Source: first direct
