New first direct Two-Year Fixed-Rate mortgage available

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New first direct Two-Year Fixed-Rate mortgage available

Mon 10th Apr 2006

A first direct Two-Year Fixed-Rate mortgage has been launched, with an interest rate of 4.99 per cent and a maximum loan to value of 95 per cent.

At the end of the opening two-year period the interest rate will switch to the bank's standard variable rate – currently 5.5 per cent.

The offer allows customers to make unlimited overpayments in either lump sums or regular inputs, although early repayment charges apply in the fixed-rate period.

A booking fee of £399 and exit charge of £149 have been set on the product and a valuation fee will also apply – this will be based on the value of the property.

Richard Kimber, chief executive of first direct, explained the launch of the new product: "Last year over 60 per cent of UK mortgage borrowers opted for a fixed-rate. This shows that most people like the comfort of knowing exactly how much they'll be paying for their mortgage every month."

The first direct Two-Year Fixed-Rate mortgage is available for loan amounts from a minimum of £15,000 to a maximum of £5 million.

A three-year tracker mortgage is also available through first direct at five per cent, which will track the Bank of England base rate plus 0.5 per cent until 2009.