First Active launches tracker mortgage

FIRST ACTIVE will launch a cut-price tracker mortgage today that will target people trading up from their existing homes.

Tracker mortgages attract a fixed margin above the European Central Bank (ECB) rate and ensure that ECB rate increases or cuts are passed on in full to borrowers.

This is First Active’s first move into the tracker mortgage market, which is becoming increasingly popular among borrowers. While most lenders already provide at least one product that tracks the ECB rate, First Active will target borrowers taking out loans of at least €250,000, ruling most first-time buyers out.