First Direct is setting up an offset mortgage for borrowers with lower levels of equity or relatively small deposits.
Previously, First Direct has only offered an offset mortgage to customers with a maximum loan to value ratio of 80 per cent but borrowers with an LTV of 81-95 per cent will now have access to offset loans.
All First Direct offset mortgages taken out before September 30 get an introductory three-month discount at 1.01 per cent off its SVR – currently 5.25 per cent – so customers with an LTV ratio of 81-95 per cent will start borrowing at 4.24 per cent.
Chief executive Alan Hughes says: “Borrowers who may not have been able to take advantage of a First Direct offset mortgage in the past can now join the offset revolution with one of the cheapest options on the market.”
