It implements its biggest reductions on 95% LTV products
Digital bank first direct has slashed rates on more than 60 of its mortgage products, with the largest reductions of up to 45 basis points (bps) made on its 95% loan-to-value (LTV) mortgages.
The lender has implemented more significant rate cuts across its two-, three-, and five-year mortgage range a month after cutting rates by up to 40bps.
Rates on its 95% LTV two- and three-year fixed fee-saver have dropped from 6.44% to 5.99%, while the rate on the 95% LTV five-year fixed fee-saver have gone down to 5.64%.
In addition, first direct has reduced its 90% LTV range by up to 30bps, with 90% LTV products starting at 5.09% for a five-year fixed rate.
For both new and existing customers, first direct’s cheapest mortgage is now the 60% LTV five-year fixed standard, now at 4.64%.
For new customers, the largest rate reductions are in the two-year fixed rate space, with reductions of between 20 and 45bps, with the 60% LTV two-year fixed standard now priced below 5% at 4.94%.
Rate reductions were also made for existing customers looking to switch, with two-year fixed rate products starting at 4.84% and the lowest three-year fixed rate mortgage also priced at 4.84%. Offset mortgages also came down for switchers, with reductions of 0.36%.
“There has been a lot of movement in the mortgage market in recent weeks and rates have come down, which is good news for existing and aspiring homeowners,” stated Liam O’Hara, head of mortgages at first direct.
“In the last three weeks, we’ve carried out two rounds of significant rate reductions, bringing down the cost of borrowing for thousands of our customers as those who have secured a previous rate with first direct can transfer their booking fee to a cheaper product for free. We now have two dozen products priced under 5% for new customers and existing customers looking to switch, with our cheapest mortgage at 4.64%.
“Our biggest rate cuts in the higher LTV space to ensure that those with a smaller deposit have competitive options as they make their first steps onto the ladder. To support first-time buyers, we also offer a range of useful features, including unlimited overpayments on all our mortgages, 40-year maximum terms, and product booking fees capped at £490.”
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