Direct Line launches new fixed rate
mortgages

Direct Line has today (18 April) launched a new suite of fixed rate mortgages, which have the added incentives of discounted home insurance and free home emergency cover for two years.

Direct Line’s most popular deal is the 2 Year Fixed, which has been re-launched at a highly competitive rate of 4.49%.   One in every two UK mortgage customers choose a fixed rate deal, with almost two thirds selecting a 2 Year Fixed.

Every Direct Line mortgage customer taking this deal is entitled to an additional 20% off Direct Line’s best home insurance price for two years.  And when the customer activates the home insurance, they will then receive two years’ free Direct Line home emergency cover, worth at least £71 per year.

The incentives also apply to Direct Line’s 3 Year Fixed Mortgage which has been re-launched at 4.84% and its 5 Year Fixed which is positioned at 4.89%. 

Direct Line Mortgages Commercial Director David Dyer believes these deals represent outstanding value for customers:

“Fixed rate mortgage prices are currently rising, so even stand alone, these mortgage rates offer excellent value for money in the marketplace right now.  However, once you include the additional discount for Direct Line’s home insurance plus free Direct Line home emergency cover, we believe it is a win-win proposition for customers.”

The additional discount on home insurance plus the free home emergency cover are not conditional on taking the mortgage deal.  Customers can choose to activate the home insurance whenever it suits them during the coming 12 months, which offers greater flexibility in linking into the end of their current policy.  With discounts already available for buying online or having Direct Line car insurance, the additional 20% discount for two years, can offer a fantastic saving.    
      
There is also two years’ free Direct Line home emergency cover, worth at least £71 per year.   HR24 covers security, plumbing, drainage and electrical problems with immediate advice in the event of an emergency and the cost of all call-outs, parts and labour up to £1000 (including VAT) per emergency covered (excluding heating). 

Direct Line’s mortgages are available for both new purchasers and those looking to re-mortgage.  The required valuation for re-mortgages is free and there are also free legal fees when customers re-mortgage using Direct Line’s special solicitors’ package. 

For more information, log on to www.directline.com or call 0845 309 1932.

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Jill Coyle/Direct Line Loans & Mortgages Press Office
0141 308 4295/07979 738557
Email: jill.coyle@rbs.co.uk

Notes to Editors:

1. Direct Line offers a 2 year fixed rate mortgage at 4.49%; a 3 year fixed rate at 4.84% and a 5 year fixed rate at 4.89% of up to 95% Loan To value (LTV).  Arrangement fees are £449 for both re-mortgages and house purchases (both added to the loan amount at completion).  A £25 funds transfer fee is also payable and this is added to the loan amount at completion.  After the fixed rate period, the rate will revert to 1.5% above the Bank of England base rate – currently this is a rate of 6.00%. 

2. Direct Line mortgages are provided by The Royal Bank of Scotland plc trading as Direct Line.

3. Early repayment charges apply during the fixed rate period and a £195 admin fee applies if you repay before the end of the mortgage term.

4. A Higher Lending Charge (HLC) is payable for LTVs over 90%.

5. Direct Line mortgages are available in Scotland, England and Wales to over 18s only.
 
6. The free home emergency cover is Direct Line’s Total Response cover, excluding heating.

7. Calls may be recorded. 

All rates correct as at 18/04/06