New capped tracker from first direct

First direct has launched a new three-year limited edition capped tracker mortgage .

It says the launch is in response to mortgage borrower uncertainty regarding interest rate rises and their consequent impact on monthly payments.

The 65% LTV option is guaranteed to never go above 3.98% and the 75% LTV version will never reach more than 4.38% even if the Bank Rate should rise by more than 1.3% in the next three years.

Richard Tolchard, senior mortgage product manager at first direct, said: “Our capped tracker is designed to enable customers to enjoy the current low variable rates while also giving them some comfort for when rates start to rise.