Rates were cut by as much as 1.05%
Challenger bank first direct has reduced rates across more than 90 of its mortgage products, bringing down the overall cost of borrowing for both new and existing residential mortgage customers.
The lender’s 10-year fixed range has seen reductions of up to 1.05%, with the cheapest product in the range now priced at 4.04%. The lowest rate on offer is now the five-year fix standard fee mortgage at 60% loan-to-value (LTV), which is now priced at 3.99%.
Rate reductions of up to 0.35% were also applied to first direct’s two-year fixed range, with the most competitive rate now 4.49%. Five-year fixed rates were slashed by up to 0.45%.
The new, reduced mortgage rates are available to new and existing customers and include a free standard valuation. Some of the most competitive new rates from first direct include:
- Five-year fixed at 60% LTV rate with a £490 product fee - rate reduced by 0.25% to 3.99%
- 10-year fixed at 60% LTV rate with a £490 product fee - rate reduced by 0.95% to 4.04%
- 10-year fixed at 75% LTV rate with a £490 product fee - rate reduced by 0.95% to 4.09%
- 10-year fixed at 80% LTV rate with a £490 product fee - rate reduced by 0.95% to 4.09%
- Five-year fixed at 75% LTV rate with a £490 product fee - rate reduced by 0.20% to 4.14%
- Five-year fixed at 75% LTV rate with no product fee - rate reduced by 0.20% to 4.29%
- Five-year fixed at 95% LTV rate with no product fee - rate reduced by 0.45% to 5.14%
“These latest rate reductions are the most significant to be implemented to the first direct mortgage product range since last autumn,” Carl Watchorn (pictured), head of mortgages at first direct, said. “Our biggest rate cuts are across our 10-year range as we recognise that many customers will want long-term peace of mind at the moment.”
Earlier this year, the lender launched a range of best-buy fixed rate mortgage deals for first-time buyers, home movers, or those looking to remortgage
first direct also offers customers the option to make unlimited overpayments and terms up to 40 years, helping reduce monthly payments for customers who wish to extend their term. It does not charge booking fees on some mortgage options, or fixed at £490, with no additional charge for advice from advisors and free legal fees for remortgage applications.
The lender’s mortgage products are only available online and over the telephone. It does not operate through mortgage brokers.
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