2 Year Tracker Offset - Fee Free
Available for:
- Remortgaging
- First time buyer
- Moving home
- Existing mortgage customer
To hold a first direct mortgage you'll need a 1st Account, our current account, to pay your mortgage from.
Tracker Offset mortgage:
- the interest rate you pay is an agreed percentage above the Bank of England's base rate for the duration of the tracker rate period
- as the base rate rises and falls, your interest rate will track these changes, and so rise and fall accordingly. This will affect your monthly payments
- you are able to make unlimited overpayments to your mortgage whenever you choose.
We have a range of different tracker terms. To view and compare our full range of mortgages, try our Find and Compare tool.
Learn more about our Offset Mortgage in our Offset Mortgage video explained below - and discover how an offset Mortgage could work for you with our Offset Mortgage calculator.
How can we help?
If you're new to first direct
0800 48 24 48 †
first direct account holders
08 456 100 103 †
Existing mortgage holders
To switch your deal
08 456 100 236 †
Other queries
08 456 100 173 †
In detail
| Overview | |
|---|---|
|
Maximum loan to valuation (LTV) This is the maximum LTV that will be accepted for this product. The loan to value represents the percentage of the value of the property which you would like to borrow. For example, a £100,000 property with an £80,000 mortgage would have an 80% LTV. The maximum LTV we will lend will depend on your individual situation, the property, the mortgage you choose and the amount you borrow. |
75% |
|
Qualifying Criteria To qualify for some products you may be required to hold another first direct product. To open a first direct mortgage, you must hold or open a 1st Account (our current account) to pay your mortgage from. Buyer type restrictions may also apply. |
Yes |
|
Tracks the Bank of England Base Rate Plus... The interest rate you pay is an agreed percentage above the Bank of England base rate for the duration of the tracker rate period. The interest rate payable will rise and fall in line with changes to the Bank of England base rate. This only applies to Tracker Rate Mortgages. |
2.99% |
|
Interest rate This is the percentage rate at which the lender calculates the interest that the borrower is charged on a mortgage. |
3.49% |
|
Standard Variable Rate (SVR) The Standard Variable Rate will vary over the term of the loan and is a variable rate set internally by first direct. The Standard Variable Rate does not track the Bank of England Base Rate. |
3.69% |
|
The overall cost for comparison is APR stands for the Annual Percentage Rate of charge used to compare loan offers. |
3.7% APR |
|
Rate Period The period during which the fixed or tracker rate applies. After this period the mortgage rate will revert to the Standard Variable Rate. |
2 years |
|
Booking fee This is non-refundable fee charged on some mortgages to secure a particular mortgage deal. Once the booking fee has been paid, your chosen rate will be available for six months, from the date of the Offer Document. For our Fixed Rate Mortgages, the booking fee is payable for every £400,000 of lending or part thereof. |
£0 |
|
Arrangement Fee A fee which is payable when your mortgage is drawn down. The amount of the Arrangement Fee will vary depending on the Mortgage product chosen. |
£0 |
|
Maximum loan size The maximum amount that can be borrowed with this Mortgage product. |
£1,000,000 |
|
Porting "Porting" is a term used to describe the transfer of your current first direct rate from one property to another when you sell your property and buy another at the same time. This may be available subject to Terms and Conditions. |
Yes |
| Repayment | |
|
Repayment type Repayment means the way you choose to pay back the mortgage capital you borrow. A capital repayment monthly mortgage payment covers the interest and also reduces the total balance outstanding. An interest only monthly mortgage payment covers just the interest, the original capital amount borrowed remains outstanding throughout the term of the Mortgage. |
Interest only |
|
Extended tie-in period Some lenders stipulate that the borrower keeps their mortgage with that lender for a period of time after their agreed interest rate period has ended. If the borrower moves their mortgage elsewhere during the tie in period, they may have to pay an early repayment charge. |
No |
|
Interest calculated daily The interest chargeable on the outstanding mortgage balance is calculated every day rather than at the end of each week, month or year. |
Yes |
|
Unlimited lump sum repayments without charge When a customer makes a one-off payment to reduce the outstanding balance on their mortgage without incurring a charge. |
Yes |
|
Unlimited overpayments without charge When a borrower chooses to make a larger monthly mortgage payment on their mortgage than is stipulated under the mortgage terms, without incurring a charge. |
Yes |
| Fees and charges | |
|
Early repayment charges An Early Repayment Charge is a charge you may have to pay if you choose to fully repay your mortgage early. Early repayment charges do not apply to first direct mortgages if you choose to make overpayments or lump sum payments to your mortgage. If you take a fixed rate mortgage and you repay the whole of your mortgage during the fixed rate period an early repayment charge will apply. This charge is calculated at 3% of the original mortgage amount during first year of the fixed rate period and 2% of the original mortgage amount if the mortgage is closed in any subsequent year during the fixed rate period. If you choose to repay your mortgage after the fixed rate period has ended, no early repayment charge will apply. The amount of any early repayment charge will be displayed on both your Key Facts Illustration and Mortgage Offer, which you will receive should you decide to progress with a mortgage application. |
No |
|
Closure fee This is an administration cost to cover the costs in closing a mortgage once it has been fully repaid. Where a customer wishes to transfer their rate to another property and the sale and purchase complete simultaneously, the closure fee will be waived. |
No |
How a first direct Offset Mortgage works
Our Offset Mortgage is an interest-only mortgage that allows you to use the balances in your qualifying savings and current accounts to reduce the interest payable on your mortgage borrowing. Take a moment to find out what an Offset Mortgage could do for you.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
