Bank offers new offset tracker deal

First Direct has launched a new offset tracker mortgage, which it states is the “lowest ever” offered in the UK.

The bank has revealed the deal will be offered at 2.58 per cent, with a loan-value of 65 per cent and an arrangement fee set at £999.

First Direct noted that the new offering is being launched at a time when people are keen to pay off their borrowing using their savings and other spare cash, with £600 million of unsecured borrowing alone being paid off in October.

Now may be a time when those looking to take out a mortgage are keen to find one where they can pay off extra if their financial circumstances allow for this.

New research by the Co-operative Bank has found that there has been a 56 per cent year-year increase in the number of people overpaying on their mortgages, something it attributed to consumers taking advantage of the historic low base rate.

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