First direct’s “Limited Edition” Capped Tracker Mortgage
July 8th, 2011
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first direct (firstdirect.com) has launched a new 3 year ‘Limited Edition’ Capped Tracker mortgage in response to mortgage borrower uncertainty regarding interest rate rises and their consequent impact on monthly payments.
As with a standard tracker mortgage the Capped Tracker follows the Bank of England Base Rate as it goes up and down. The difference is that the 65% LTV option is guaranteed to never go above 3.98% and the 75% LTV version will never reach more than 4.38% even if the BBR should rise by more than 1.3% in the next three years.
Both maximum rates are considerably lower than the average 3 year fixed mortgage rate currently available (4.92% according to Moneyfacts).
Source: first direct
