First Direct has announced a significant reduction in its mortgage rate for new loans.
The bank has knocked a full percentage point off the rate, brining it down to the Bank of England base rate of 4.75 per cent.
That rate will be matched until 2006, when it reverts to First Direct's already highly competitive standard variable rate of 5.75 per cent.
"Forget bargain basement, this is bargain base rate," said Richard Kimber, chief executive of First Direct.
All First Direct mortgage customers also have the option of offset and flexible features, allowing mortgage holders to offset their savings and current account balances against their home loan, and make unlimited over-repayments.
Mr Kimber added: "Offsetting makes the First Direct mortgage an even better deal, as every pound and penny works hard to reduce the mortgage. It's optional and risk-free so a great, safe way of saving money."Click here to compare UK mortgage rates.
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