Direct Line announces online-only mortgage

A new online-only mortgage has been announced by Direct Line, to be launched on June 16th.

The offer is a two-year tracker deal with a current rate of 4.19 per cent, which will revert to a long-term tracker rate, presently at six per cent.

Direct Line claims that the offer, which is currently 0.31 per cent lower than the Bank of England base rate, will be one of the best offers on the market.

The company’s new mortgage is being launched at the same time as it releases its online mortgage index, which reports that almost twice as many people would be likely to apply for a mortgage online if they were sure they were getting the cheapest possible deal.

According to Direct Line almost 80 per cent of their respondents expect online mortgages to become more popular and the company itself predicts that the online mortgage market is “set to take off”.

“We believe that the online mortgage market is ready for strong growth in a similar way to the increase in recent times of grocery, music and book shopping online,” said David Dyer, commercial director of Direct Line Mortgages.

“Many people realise that the best way to achieve value for money is to go online, as they do currently when taking out a personal loan. That philosophy will increasingly apply to buying your mortgage.”

The new Direct Line online mortgage carries a £599 arrangement fee which will be added to the loan amount and a £30 funds transfer fee is also payable.