first direct launches fixed-rate mortgage

14 July 2005
first direct has launched a new fixed-rate mortgage in an attempt to offer long term value to customers.

The bank is now offering borrowers a fixed rate of 4.89 per cent for three years.

Customers will be offered the reassurance of certainty in their monthly repayments and have the option of offsetting their savings and current account balances.

The service also boasts the flexibility to make unlimited overpayments as well as underpayments, plus the option of redrawing money back up to the original limit.

At the end of the fixed term borrowers can revert to the standard variable rate of 5.75 per cent, although they are still free to opt for another fixed rate should they so wish.

Moneyfacts recently named first direct as one of the country's best value mortgage lenders and according to Research International, it is currently "the UK's most recommended bank".

Richard Kimber, first direct's chief executive, said: "Our low fixed rate offers monthly repayment security at a great price.

"The sums get even better when you take into account the ability to offset," he added.

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