First Direct goes genuinely fee-free on offset trackers

It's unusual for a fee-free mortgage to really mean "fee free" - but First Direct seems to mean it.

Their two new offset tracker mortgages are designed to appeal to borrowers moving their mortgage from another provider.  These are borrowers who are often put off by the high charges for booking and arrangement.

There are other mortgage deals without arrangement fees, but they often do have other charges to pay: for example, valuation fees, exit fees or (most commonly) early repayment charges.  That's what makes it remarkable that First Direct's deals have none of these – just a closure admin fee.

Let's look at the trackers in more depth:

• Up to 60% LTV: tracks 2.49% above base rate, currently 2.99%
• Up to 75% LTV: tracks 2.94% above base rate, currently 3.44%

That's really all there is to say. No fixed periods and no fees.  We're impressed.

Remember that they're offset mortgages, so they function best if you've got savings too (to offset the mortgage interest – or to look at it another way, to earn up to 3.44% on your savings tax-free).  Also, those tracker rates won't look so appetising if or when the base rate goes back up to four or five per cent, whenever that may be.

Nevertheless, for now, these look like appealing deals for those with at least 25% equity in their current property value.  And the catch, if you can call it one, is this: they're only available for a limited time.