first direct launches lifetime tracker

The lowest lifetime tracker and one of the few below 3%, the mortgage has a maximum loan to value of 65% and an arrangement fee of £999.

The new offset tracker arrives at a time when, according to the Bank of England, Britons repaid £600 million of unsecured debt in October, more than any month since the bank started collecting the data. With paying down debt is now firmly on the nation's priority list, it seems people are using their spare cash and some savings to get rid of their more expensive debt.

Jimmy Kelly, head of mortgages at first direct commented: "As a responsible lender we feel it's important to encourage our customers to use their money in the most cost effective way.

"The flexibility of the first direct offset tracker, plus the fact that you can keep all your money in separate accounts, makes it easier to keep on top of you finances and reduce your debt more quickly."