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first direct launch 'Limited Edition' Capped Tracker Mortgage

01 Jul 2011

first direct has launched a new 3 year 'Limited Edition' Capped Tracker mortgage in response to mortgage borrower uncertainty regarding interest rate rises and their consequent impact on monthly payments. 

As with a standard tracker mortgage the Capped Tracker follows the Bank of England Base Rate as it goes up and down.  The difference is that the 65% LTV option is guaranteed to never go above 3.98% and the 75% LTV version will never reach more than 4.38% even if the BBR should rise by more than 1.3% in the next three years.  Both maximum rates are considerably lower than the average 3 year fixed mortgage rate currently available (4.92%)*. 

 

Repayment 3 year Capped Tracker rates

Max LTV 

Current Offer rate 

% abv Base

Max rate possible upto 2014

APR  

Booking fee

'Limited Edition'

Capped Tracker

65%

2.68%

2.18%

3.98%

3.6%

£999

'Limited Edition'

Capped Tracker

75%

3.08%

2.58%

4.38%

3.7%

£999

 

Richard Tolchard, Senior Mortgage Product Manager at first direct commented: 

"Our Capped Tracker is designed to enable customers to enjoy the current low variable rates while also giving them some comfort for when rates start to rise. With a Capped Tracker, customers with a 75% LTV mortgage know their monthly payments wont rise above those required to pay 4.38%, for the capped period. 

"At a time when Moneyfacts are currently reporting the lowest mortgage rates in 23 years and with differing opinion on when and how rapidly the Base Rate will increase, it's understandable that some borrowers are nervous about missing out by fixing too soon or being stuck on a tracker when the rates go up." 

For further information on this press release please contact Rebecca Hirst on 01132 766899 or Rebecca.hirst@firstdirect.com or Amanda Brown on 01132 766700 or Amanda.brown@firstdirect.com

 

>ends<

 

Notes to Editors 

To apply for a mortgage, if you are already a customer please call 08 456 100 103, if you are not yet a customer please call 0800 48 24 48.

* According to Moneyfacts, the average two-year fixed rate deal is now at 4.32%, three year fixed deals now average 4.92%, five-year fixes are at 5.29% and the average two-year tracker deal is now at 3.37%.

Capped Tracker details

  • The Repayment Capped Tracker Mortgage is available for a limited time only.
  • The rate moves in line with the Bank of England Base Rate until 30 September 2014. However, unlike most other tracker mortgages, the Repayment Capped Tracker has a maximum rate, no matter how much the Base Rate rises.
  • The 65% LTV Repayment Capped Tracker Mortgage tracks the Bank of England base rate plus 2.18% until 30 September 2014. We guarantee that the rate will not be more than 3.98% until 30 September 2014. The current rate is 2.68% and the overall cost for comparison is 3.6% APR. A Booking fee of £999 applies.
  • The 75% LTV Repayment Capped Tracker Mortgage tracks the Bank of England base rate plus 2.58% until 30 September 2014. We guarantee that the rate will not be more than 4.38% until 30 September 2014. The current rate is 3.08% and the overall cost for comparison is 3.7% APR. A Booking fee of £999 applies.
  • Booking fees are payable for every £400,000 or part thereof.
  • Early Repayment Charges apply until the end of the capped period 30 September 2014.
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