UK-based First Direct, a division of HSBC, has launched two two-year fixed-rate offset mortgages priced at 5.49% and 5.99%. Both deals revert to a standard variable rate of 6.75% and have a maximum loan-to-value of 80%.
The bank has introduced the new products to give customers the chance to choose the best balance of rate and arrangement fee to suit them. Over 10% of the bank’s customers now have offset mortgages.
Chris Pilling, First Direct’s CEO, said: First Direct are leading the way in the world of offset mortgages with great rates matching and beating the non offset options. There is no reason why customers shouldn’t benefit of making their savings and current account balances work hard to reduce their mortgages.
Plus, our offset fixed rate mortgages are unique in their flexibility. Not only can customers move as many times as they like at no extra charge, they can overpay, underpay and redraw funds, without further approval, at a moment’s notice and at the same great rate that they originally fixed the mortgage.