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First Active

Type: Two-year fixed rate

Description: First Active has reduced its two-year fixed-rate mortgage from a rate of 6.29 per cent to 6.19 per cent until 30 June 2010. The arrangement fee is £999. The maximum loan to value is 75 per cent.

Conditions: For all First Active residential remortgage products there are no basic legal or valuation fees. Overpayments of up to 10 per cent of the original balance are allowed a year, during the initial fixed-rate period. Early repayment charges apply of 2 per cent in year one and 1 per cent in year two.

Contact: www.firstactive.co.uk

Verdict: In the current climate this rate is pretty competitive and the £999 arrangement fee is average in these post-credit crunch days. As this is a remortgage product, the lower LTV of 75 per cent may not be such an issue and the flexible option allowing overpayments of up to 10 per cent each year is good. (4/5)