Two products go below 4%
Digital bank first direct has slashed rates interest rates across its entire range of fixed rate repayment mortgages.
From today, January 5, two new products are available at 3.99%, catering to both new and existing customers.
The most substantial rate adjustments were made on 10- and five-year fixed rate products, with reductions ranging from 64 to 98 basis points (bps) and up to 65bps, respectively.
The 60% LTV 10-year fixed standard rate has been reduced by 98bps from 4.97% to 3.99%, while the five-year option has been lowered by 65bps to 3.99%.
In the two- and three-year fixed rate arena, all fixed standard mortgages up to 85% LTV have been repriced below the 5% threshold, with rates starting at 4.54% for new customers and slightly lower at 4.49% for switchers.
first direct, the telephone and internet-based retail bank division of HSBC UK, has also implemented substantial cuts in the higher LTV space, with 90% and 95% LTV mortgages now starting at rates of 4.69% and 5.44%.
Last month, the lender dropped rates on more than 60 of its mortgage products.
“We are committed to reducing the cost of borrowing where we can for our customers, and we’re very pleased to be starting the year with the introduction of new sub-4% mortgages,” said Liam O’Hara, head of mortgages at first direct. “We’re making cuts across all LTVs, from 60% to 95%, to make sure there are competitive options for our customers across the board.
“Even though our most significant rate cuts are in the 10- and five-year fixed rate space, we are also implementing substantial cuts of up to 0.45% across our two and three-year fixed rate product ranges.
“Whether people are making their first steps onto the ladder, moving house, or remortgaging, we offer a range of flexible features designed to add value and support our customers. These include unlimited overpayments on all our mortgages, 40-year maximum terms, and product booking fees capped at £490.”
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