first direct, the online and telephone bank, temporarily stopped offering mortgages to new customers on 1 April after receiving five times its normal number of applications. first direct’s aim was to restore service to the standard people expect from the bank while continuing to meet the mortgage needs of existing customers. It has now cleared the backlog of mortgage application approvals from 1 April and earlier.
Chris Pilling, first direct's chief executive, said: "Last month we took the bold decision to withdraw from mortgage sales to non customers to allow us to process the huge number of enquiries we had received and focus on the excellent service we want to provide for our customers. We've now assessed all the loan applications outstanding from 1 April and earlier and let everyone know the outcome. We've honoured the fixed interest rates available when people first contacted us about their mortgage.
"I'd like to thank customers for their patience during recent weeks and also to pay tribute to our team at first direct who have burned the midnight oil to complete a year’s worth of mortgages in just three months."
The move comes as it was announced Future Mortgages would close. The Citigroup subsidiary stopped lending on 14 May; existing customers will have their business dealt with within the group.
