First direct has launched a new cheap variable rate mortgage with a discounted rate of 2.99 per cent until May 2006.
It believes that the discounted rate is the lowest currently on offer from any national bank or building society.
After May 2006 borrowers will switch to its standard variable rate which currently stands at 5.5 per cent.
First direct – a subsidiary of HSBC – calculates that borrowers with a £100,000 mortgage over 25 years could save up to £19,800 over the mortgage’s term compared to customers of Halifax. Halifax’s standard variable is currently 6.5 per cent.
First direct’s chief executive, Richard Kimber, said: "This mortgage is a win-win for homeowners. First, the lowest rate since Elvis was in short trousers, thanks to our new discount. Then, a low standard variable rate that anyone paying Halifax’s painfully high SVR would cry for.
“If you’re looking for a mortgage discount, here’s one that doesn’t come with a nasty sting in the tail."To read more about mortgage, click here.
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