First Direct has today launched a two-year, fixed rate, offset mortgage at 4.99% as a limited offer.
First Direct says it now has around 10% of all customers using offset mortgages, which allow borrowers to offset the interest on their mortgage with their current account and savings account balance.
The new mortgage benefits from being transferable to another property with no fees and offers flexible overpayments and underpayments. Maximum LTV is 80% and the maximum loan is £300,000 with an arrangement fee of £999 and a booking fee of £499.
First Direct claims it is the only bank to have immediately passed on savings from the recent base rate cut to its customers.
Chris Pilling, chief executive of First Direct, says the bank passed on the base rate cut to all variable rate customers as soon as the Monetary Policy Committee made its decision and the new deal is also a reflection of lower base rates.
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