First Direct launch three-year capped tracker mortgage

Thursday, 30 June 2011 03:10

A three-year limited edition capped tracker mortgage has been launched by finance provider First Direct, with the 65 per cent loan-to-value option guaranteed never to rise above 3.98 per cent.

Additionally, the 75 per cent LTV product will not go above 4.38 per cent, even if the Bank of England base rate climbs by over 1.3 per cent within the next three years.

The firm made this move in light of borrower uncertainty over interest rate hikes and how this will affect monthly repayments.

Senior mortgage product manager at first direct Richard Tolchard noted that this product has been designed to allow people to take advantage of low variable rates at the moment.

"It's understandable that some borrowers are nervous about missing out by fixing too soon or being stuck on a tracker when rates go up," he remarked.

Mr Tolchard went on to cite figures from Moneyfacts revealing that the lowest rates for mortgages in 23 years are now being seen.

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