It claims to offer the best rate on the market
first direct has launched its first ever 5% deposit mortgage to first-time buyers and home movers today, making it one of just a few challenger banks in the UK to enter the 95% LTV market.
Borrowers can secure up to £550,000, with no product fees, and the option to secure some of the best fixed-rates for 5% deposit holders.
The mortgages available, which can be held up to a maximum 40-year term, are a two-year fixed rate at 2.79%, and five-year fixed rate at 2.94%, both with zero product fee and free standard valuation.
first direct claims that, currently, its five-year fixed rate of 2.94% is the most competitive on the market for 5% deposit holders from a major UK lender.
In a move to embolden 5% deposit holders, first direct is also offering customers the opportunity to make unlimited overpayments, whenever they choose – a feature which is already available to its existing mortgage customers.
This mortgage is available to first-time buyers, home movers, as well as existing first direct customers.
first direct offers an Agreement in Principle (AIP) for up to six months – double that of the typical AIP – giving buyers much-needed time to find their perfect home.
“While the property market continues to speed along in the fast lane, first-time buyers have been left behind. While house prices continue to outpace deposits, we see this as a viable way of helping people on to the ladder,” Chris Pitt, chief executive at first direct, said.
first direct mortgages are only available online and over the telephone, and do not operate through mortgage brokers.
