All the new mortgages are available to new and existing customers for both house purchases and remortgages.
The mortgages have a maximum loan to value of 75 per cent.
Jimmy Kelly, first direct’s mortgage manager commented: “Offset mortgages are starting to be recognised as a great way for people to have flexibility and make the most of their money.
For example, with our 2.99 per cent fixed rate, customers would need to receive an interest rate equivalent to 3.80 per cent AER on their savings account for a 20 per cent taxpayer and 5.10 per cent for a 40 per cent taxpayer for them to achieve the same benefit as offsetting any credit balances they have against their mortgage.”
The new mortgages offer customers the chance to choose their terms depending on whether they are looking for lower rates or upfront fees.
Recent research from first direct has revealed some interesting offset mortgage trends:
The total value of offset mortgage lending has trebled since 2005
The share of new mortgage lending for offset mortgages increased by 16 per cent in the final quarter of 2008, and looks set to continue rising
At current rates of increase, offset mortgage lending will reach record levels during 2009
Offset mortgages account for 10 per cent of the value of new mortgage lending during the past year.
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