Mortgage News First Direct Boasts Most Flexible Offset Mortgage 18469903
First Direct boasts ‘most flexible’ offset mortgage
20 September 2009 / by Rachael Stiles
First direct is the only lender to offer a fixed rate offset mortgage, which allows customers to make unlimited overpayments on their mortgage whilst maintaining access to them.
According to analysis of the mortgage market by financial information provider Moneyfacts, first direct is alone in offering a product as flexible as this.
David Knight, principal mortgage consultant at Moneyfacts, explains what makes the first direct mortgage unique is that is allows the homeowner to make unlimited overpayments, either as lump sums of regular payments, with no early repayment charge, whilst also allowing them to redraw funds at the same rate throughout the term of their mortgage.
Commenting on the fixed rate mortgage, Jimmy Kelly, head of first direct mortgages at, said: “We know customers fear that they’ll leave fixing their rate until it’s too late or fix too early and miss the opportunity to save money and reduce their term by overpaying.
“The benefit of choosing first direct’s market leading offset is that customers no longer have to decide between the security of fixing a great rate and flexibility. They can have both. A best buy fixed rate secured when the market is low and the flexibility to overpay and reduce the term of their loan at no further cost. Add to this the savings benefits of offset mortgages and it’s hard to find a reason not to switch. It’s win-win.”
Tracker mortgages have seen a rise in popularity in the last 12 months since the Bank of England started slashing interest rates, but fixed rate mortgages remain the top choice for borrowers, offering security and peace of mind that their monthly payments will not rise, regardless of what the base rate does.
© Fair Investment Company Ltd