Hannah-Mercedes Skenfield, mortgage spokesperson at Moneysupermarket, said the tracker mortgages from First Direct have the potential to become very expensive in the next few years.

She added: “With a headline rate of 2.79%, First Direct’s new mortgage products certainly look appealing at first glance. However, anyone looking to take out either a tracker or discounted mortgage deal should ensure they calculate the repayments if the base rate were to rise 3% or 4%.

“If you would be unable to afford the higher repayments or if you would prefer to know exactly how much you will be required to pay each month, then you should consider a longer term fixed rate mortgage.”

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