In addition to being completely fee free, the mortgage has an offset facility which links day-to-day savings and current account balances to the mortgage, meaning customers only pay the interest on the difference. This reduces the total amount owed and cuts the interest payable. For example, someone with a £100,000 mortgage and £20,000 in savings would only pay interest on £80,000.
Chris Pilling, chief executive of first direct commented, “In the current market conditions the costs of a new mortgage can prove too much of an extra burden to customers. Our new fee free offset tracker offers a great mortgage rate with no costs at all, apart from the loan itself.
“Also with the offset facility it means that even if customers only credit their salary every month with no extra savings they will be better off than with the equivalent non offset mortgage at the same rate.”
