First Direct launches new fixed-cap tracker mortgage

Money News

www.moneynews.co.uk > Mortgages > First Direct launches new fixed-cap tracker mortgage

Topics

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Features

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Companies

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Money News

bullet
bullet
bullet
bullet
bullet

First Direct launches new fixed-cap tracker mortgage

First Direct, the internet-based subsidiary of HSBC, has reduced rates across its capped tracker mortgages by 20 base points.

Tracker mortgages are designed to allow rates to rise and fall in line with the change in interest as set by the Bank of England. However, if they increase, then the fixed-cap tracker mortgage should protect homeowners from steep increases in their monthly payouts.

Assuming that the base rate for mortgages was to rise by one per cent a year until 2014, customers with a £150,000 loan could save £2,991 compared to the average tracker product or £1,433 on the standard fixed-rate mortgage, First Direct claimed.

"Homeowners continue to be unsure whether to track or fix. With a capped tracker they don't have to choose - they get a low tracker rate whilst rates remain at 0.5 per cent while having the reassurance of a cap," explained senior mortgage product manager Richard Tolchard.

Currently, inflation across the UK economy stands at 4.2 per cent, prompting concerns that the base rate could eventually rise in a bid to lower the percentage points by two, the Bank of England's inflation target.

Click here for mortgages news
 ADNFCR-323-ID-800693655-ADNFCR

Related News : Mortgages

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet

Related News : Halifax

bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet
bullet