Online bank First Direct has announced the launch of two new fixed-rate mortgage products.

Both are two-year fixed-rate offset mortgages, both with interest rates of 6.9 per cent APR.

Following expiry of the two-year initial period, the mortgages will revert to seven per cent APR.

The bank describes the pair - which have a maximum loan-to-value of 80 per cent - as "highly competitive".

Chris Pilling, chief executive of First Direct, says it is "great to be able to offer our customers such competitively priced mortgages in the current market".

Describing them as "unique in their flexibility" he explained that customers can overpay, underpay and redraw funds as they see fit and without need for approval.

Mortgage customers may be interested to know that the Bank of England's monetary policy committee is to meet this week.

Analysts are not expecting the interest rate to rise any further as recent reports have indicated that inflation is coming back under control.

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