It also reduces rates across its range of existing two- and five-year mortgages
Digital bank first direct has introduced a range of new three-year fixed rate mortgage products to complement its range of two-, five- and 10-year options.
The new range – only available online and over the telephone – starts at 5.79% for the three-year fixed standard at 60% loan-to-value (LTV). It is available for both new and existing customers at up to 90% LTV.
“In the current market, many of our customers are telling us they don’t want to fix for five-years but want fixed rate options that exceed two years,” said Chris Pitt (pictured), chief executive at first direct. “We have acted on the feedback we’ve received by launching this range of three-year fixed rates and offering more choice and flexibility to our customers.”
The bank has also announced that it is reducing interest rates across its range of existing two- and five-year mortgages by up to 30 basis points (bps).
first direct’s five-year fixes now start at a rate of 5.24% on its 60% LTV fixed standard product, while its cheapest two-year product is the 5.89% two-year fixed standard at 60% LTV.
This is the third time the lender has reduced mortgage rates in the last month, with the last one reducing rates across more than 20 of its fixed rates by up to 15bps.
“Whether people are making their first steps onto the property ladder or looking to move house or re-mortgage, we are on hand to help,” Pitt stated. “This is why we regularly review our mortgage rates and product range, on top of offering flexible features such as low or no fees and unlimited overpayments.”
first direct offers customers the option to make unlimited overpayments, terms up to 40 years, and an agreement in principle for up to six months. It does not charge a booking fee on some mortgage options, or fixed at £490, with no additional charge for advice from advisers, and free legal fees for remortgage applications.
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