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The UK's most recommended bank¹, first direct, has launched a new three-year fixed rate offset mortgage at 4.89 per cent - just days after Moneyfacts named the bank as one of the UK's best value mortgage lenders.

The first direct fixed rate mortgage gives borrowers:

• A highly competitive fixed rate of 4.89 per cent for three years (5.7 per cent APR);
• Reassurance of monthly repayment certainty;
• The option to offset savings and current account balances;
• The flexibility to make unlimited overpayments as well as underpayments, plus option of redrawing money back up to the original limit;
• Reversion to an extremely competitive standard variable rate (SVR) - currently 5.75 per cent - at the end of the fixed rate term;
• Borrowers are not tied to the SVR at the end of the term. They are free to opt for another fixed rate;
• Booking fee of between £195 and £295 depending on the size of the loan.

Borrowers who prefer a variable rate can opt for first direct's base rate offset mortgage offer. This matches the Bank of England base rate - currently 4.75 per cent - until 2006, when it will revert to first direct's standard variable rate - currently 5.75 per cent.

Richard Kimber, first direct's chief executive said: "Our low fixed rate offers monthly repayment security at a great price. The sums get even better when you take into account the ability to offset.

"first direct delivers long term value for borrowers. Just last week, the mortgage rate experts at Moneyfacts named us as one of the UK's best value mortgage lenders², based on our standard variable rate."

ENDS

Notes to editors.

1. first direct is an award winning mortgage lender:
   • Best direct lender 2005 - What Mortgage? Magazine;
   • Best internet lender 2005 - Mortgage Advisor and Homebuyer Magazine.
2. first direct
   first direct has been the UK's most recommended bank, and has had the most satisfied customers, for the last 13 years consecutively (which is when the research began), according to research from MORI and Research International.

   The reasons first direct's new customers gave for joining in 2004 were:

   • 37 per cent following a personal recommendation;
   • 37 per cent due to dissatisfaction with their previous bank;
   • 36 per cent to benefit from 24 hour banking;
   • 32 per cent to benefit from internet banking;
   • 17 per cent to benefit from text message banking.
   (There are multiple reasons per customer)
   
   
3. The HSBC Group
   first direct is a division of HSBC Bank plc, and a member of the HSBC Group. Serving over 110 million customers worldwide, the HSBC Group has over 9,800 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,277 billion at 31 December 2004, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.

¹ Research International

² first direct was the third cheapest lender in the Moneyfacts top 35 lenders survey (2/7/05) based on total interest payable at the standard variable rate between 1/6/05 and 1/7/05 on £100,000.

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