Spotlight On: First Direct's two-year tracker

Kate Hughes
Friday 03 September 2010 19:00 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The deal

A two-year repayment loan from the online bank First Direct, with an interest rate tracking 1.69 per cent above the Bank of England's base rate – currently 2.19 per cent – for those looking for a loan worth 65 per cent or less of the property's value.

Good points

The rate won't be beaten, with the closest competition from Coventry Building Society at 2.89 per cent. And the fee – part of the bank's £99 fee deal across all mortgage products – is another market leader as Coventry's loan will cost £999 to arrange.

Bad points

Customers would need to bank on interest rates remaining low, plus it's no good for those who haven't saved 35 per cent of the value of their home.

Conclusion

This is an attractive offer for those willing to have a high stakes flutter on rates staying low for at least two years. You'll be basking in low repayments for now, but with inflation going up and the Government's sweeping spending cuts, the pressure is on for a hike in the base rate and subsequently your mortgage repayments.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in