New offset tracker from first direct

First direct has unveiled a new offset tracker which tracks 2.08% above the Bank of England base rate (currently 2.58%).

The product has a maximum loan to value of 65% and an arrangement fee of £999.

The offset tracker means borrowers can offset savings against their mortgage (the equivalent to earning a higher rate of savings interest), but also the flexibility to keep their savings separate from their mortgage and use the cash to pay off expensive debt as and when they wish.

Jimmy Kelly, head of mortgages at first direct, said: “As a responsible lender we feel it’s important to encourage our customers to use their money in the most cost effective way.