First Direct - Life Tracker Mortgage

DCM78

Hi, I am a first time buyer and I am currently trying to decide what mortgage to go for.

As interest rates are currently so low i am thinking my best option may be to go for a tracker as getting a fixed deal at present would mean paying over the odds? A few friends have recommended first direct to me and after looking at there life tracker deal seems pretty competative (as far as i can tell!).

The mortgage tracks at 2.09% above the base rate and is currently 3.59%.

I am looking to borrow no more than £100,000 and have £25,000 saved up as a deposit.

What is the general opinion on this mortgage from first direct. One thing i am slightly confused about is the length of the term, it doesn't mention a fixed term so i am assuming there will be a penalty fee for moving away from the mortgage (unless transferring to another first direct mortgage)?

Thanks for taking the time to read this post.

sdooley

there is no fixed term, you can leave (e.g. to a fixed rate) without penalty.

Have you considered their offset tracker? If you do that you might be able to add to the offset account to reduce the interest you pay over time (while still being able to withdraw your offset savings if needed) .

DCM78

I did consider it, i'm not sure though if i could make regular saving deposits each month to reap the benefits though.