first direct cuts down rates on all fixed rate mortgages

first direct, the telephone and internet-based retail bank division of HSBC UK, has announced that it will be reducing the rates of its two, three, five, and ten-year mortgages.

“We remain committed to reviewing our rates regularly so that both new customers and switchers have access to competitive products in the current market,” commented Chris Pitt, CEO of first direct.

With the rates being reduced by up to 0.20%, some of the rates have fallen below the 5% mark.

“After our latest review, we have reduced rates across our entire range of fixed rate repayment mortgages, with our five-year fixed range now starting below the 5% mark,” said Pitt.

The lowest priced mortgage that the bank has - its 5-year fixed standard at 60% loan-to-value (LTV) - is now available to new customers and switchers at a rate of 4.92%.

Within the range of three-year mortgages, the lowest rate is 5.46% on the 3-year fixed standard at 60% LTV. Among two-year fixed rates, rates begin at 5.51% while the cheapest 10-year fixed standard products are offered at the rate of 5.12%.

Here are the different repayment ranges for the following:

New mortgage customers:

• 2-year fixed fee saver at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.19%
• 2-year fixed standard at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.20%
• 3-year fixed fee saver at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.16%
• 3-year fixed standard at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.20%
• 5-year fixed fee saver at 60%, 75%, 80%, 85%, 90% and 95% LTV - decreased by up to 0.15%
• 5-year fixed standard at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.17%
• 10-year fixed fee saver at 60%, 75% and 80% LTV - decreased by 0.06%
• 10-year fixed standard at 60%, 75% and 80% LTV - decreased by 0.06%

Existing mortgage customers:

• 2-year fixed fee saver at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.19%
• 2-year fixed standard at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.20%
• 3-year fixed fee saver at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.12%
• 3-year fixed standard at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.20%
• 5-year fixed fee saver at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.15%
• 5-year fixed standard at 60%, 75%, 80%, 85% and 90% LTV - decreased by up to 0.17%

For the offset range of existing mortgage customers, 2-year fixed standard at 60% and 75% LTV saw a decrease by up to 0.10%.

first direct mortgages are only available either online or over the telephone. It does not operate through mortgage brokers.

What do you think about first direct’s new rates? Share your thoughts on the comments below.