In this brief blog, we are going to discuss the direct line mortgages and where you can get help if you have a current mortgage from them.

Who are Direct line mortgages?

The direct line brand started by sir Peter wood in 1984 in the UK they mainly focussed on insurance products  but went on to introduce its direct line mortgages in 1994 under the watchful eye of RBS who owned the direct line brand and essentially controlled the direct line mortgages offered by the direct line brand.

Direct Line mortgages had two main offerings:

The Fixed Rate mortgage

The Discount Rate mortgage

The direct line Fixed Rate mortgage:

The direct line fixed-rate mortgage had an initial fixed term of 1,2,3,4 or 5  years then it moved to the lender’s standard variable rate.

You had the option to overpay up to 10% of the initial borrowed amount a year during the fixed-rate term but if you overpaid more than 10% of your original mortgage balance then you would incur an early repayment charge.

Interest was calculated daily

Arrangement fees were charged

The direct line discount Rate mortgage: 

The direct line discount rate mortgage had a marginal discount for a fixed 2 year period which was based on the Bank of England Base Rate. AT the end of the discount term the mortgage rate reverted and followed the bank of England base rate for the rest of the mortgage term.

 You had the option to overpay up to 10% of the initial borrowed amount a year during the fixed-rate term but if you overpaid more than 10% of your original mortgage balance then you would incur an early repayment charge.

Interest was calculated daily

Arrangement fees were charged

Direct line mortgages also heavily pushed to get borrowers to remortgage to them by offering to pay for the borrower’s valuation fees, legal fees and allowing borrowers to overpay without limitations.

In this brief guide, we discussed the direct line mortgages which no longer exists. All existing direct line mortgages are now managed by RBS who you can contact here.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.


John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.