First Direct has launched a 1.99% tracker mortgage in an attempt to capture an even larger slice of the UK contractor mortgage market. Monthly repayments are pegged for two years at 1.49% above the Bank of England base rate, but of course these will increase when interest rates rise.
The bank has launched the product in the hope of wooing customers away from other mortgage lending institutions’ standard variable rate deals. There is a £999 fee attached to the mortgage but lenders who would rather pay a fee of just £99 can get a tracker at 1.69% above base. This deal can also be obtained from sister company HSBC providing customers have a whopping 60% equity.
First Direct also prides itself on its high levels of customer service. Senior product manager, Richard Tolchard, went as far as to say the bank’s mortgage customers received a “legendary” standard of service.
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