Direct Line, the popular
home insurance provider, have attempted to break into the
mortgage market with a new combined package. The deal gives borrowers the chance to take out a mortgage with Direct Line and get discounted home
insurance and emergency cover for a two year period. The comprehensive home insurance policy provided by Direct Line comes at a discount of 20 per cent for the first two years of the
mortgage loan, and includes free emergency cover which is worth around £70 per year.
The
lender has entitled the deal ‘Living for Less’ and it can be taken on for two, three and five-year
fixed rate mortgages, or on two-year base rate tracker mortgages. The tracker deal will revert to the base rate plus 1.10 per cent following the expiration of the initial term. Currently, the two-year tracker rate is at 4.5 per cent. The two-year fix is at 4.74 per cent, as is the three year fix. The five-year fix stands at 4.84 per cent. The maximum loan to value is 95 per cent of
property value.
The deal has an arrangement fee of £449, but this covers all legal and valuation fees incurred when a borrower is seeking to
remortgage away from their existing deal.
