It also launches a five-year fixed fee saver at 60% LTV
Digital bank first direct has reduced rates across more than 40 of its two- and five-year fixed rate mortgages, including its 60% loan-to-value five-year fixed standard, now priced at 3.89%.
first direct has also launched a five-year fixed fee saver at 60% LTV with no fee and a rate of 3.99%, which, according to the lender, is now the cheapest product of this type available in the market without a fee.
The lender has implemented further cuts to its 90% LTV rate, reducing the cost of borrowing further for those looking to get on the property ladder with a smaller deposit.
As part of this latest round of rate reductions, first direct applied rate cuts of up to 0.25% across its five-year fixed product range, with the 60% LTV product dropping to its lowest rate since Autumn 2022. Reductions were applied across all LTV bands up to 90%, with the five-year fixed standard at 90% LTV priced at 4.44%.
first direct’s two-year fixed range also saw reductions of up to 0.20%, with the 60% LTV two-year fixed standard product priced at 4.29%, and the 90% LTV two-year fixed standard offered at 4.84%.
The lender had earlier reduced rates across more than 90 of its mortgage products.
The new, reduced mortgage rates are available to new and existing customers and include a free standard valuation. The complete list of first direct’s mortgage products can be accessed online through the lender’s website.
“We’ve focused on reducing the cost of borrowing on our two- and five-year fixed rate mortgages as we are seeing consistent demand for those products, and we want to offer our customers value where it matters,” Carl Watchorn (pictured), head of mortgages at first direct, said. “We have also applied further cuts to our 90% LTV products in order to support first-time buyers looking to get on the housing ladder with a smaller deposit.
“First-time buyers face many challenges in the current climate, and we want to support them, which is why we offer a competitive range of mortgage products that provide added flexibility through features such as a 40-year term and unlimited overpayments.
“All first direct mortgage products are also either fee-free or come with a maximum fee of £490, helping reduce the upfront costs that come with buying a property.”
The lender’s mortgage products are only available online and over the telephone. It does not operate through mortgage brokers.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, Twitter, and LinkedIn.
