It reduces rates across its fixed rate product range
Digital bank first direct has announced rate cuts across its two-, three-, and five-year fixed rate mortgages for both new and existing customers.
The lender’s lowest priced mortgage is now priced at 4.87% – a five-year fixed standard at 60% loan-to-value (LTV). Its 70% and 75% LTV products are also priced under 5% at 4.92% for both.
Across the bank’s three-year mortgage range, rates were slashed for 60%, 70%, and 75% LTV for the fixed rate saver and fixed standard, with rates starting at 5.29% on the 60% LTV fixed standard mortgage for new customers and existing customers.
For the two-year fixes, new customer rates were reduced for the 60%, 70%, and 75% LTV fixed standard, and on the 60%, 70%, 75%, 80%, and 85% LTV fee-saver mortgages, with the range starting at 5.36%.
Switcher rates in the two-year remortgage range were cut by as much as 0.33% on two-year fixed options, with the cheapest two-year deal priced at 5.27%.
“After announcing rate reductions last week, we have once again reduced the cost of borrowing on some of our most popular products,” Chris Pitt (pictured), chief executive at first direct, said. “Our cheapest five-year rate is one of the most competitive in the market if you consider the low or no-fee feature that we implement across our product range – which means that set-up fees are capped at a maximum of £490.
“We have also cut rates significantly for switchers, with reductions of up to 0.33%. We will continue to regularly review our mortgage range to ensure it’s competitive for our customers, whether they’re new to the bank or existing first direct customers looking to switch to a new deal.”
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, with free legal fees for remortgage applications.
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