The reduced mortgage rates are available to new and existing customers
Challenger bank first direct has launched a range of best-buy fixed rate mortgage deals for first-time buyers, home movers, or those looking to remortgage.
The lender’s new, reduced mortgage rates are available to new and existing customers and include a free standard valuation. Some of the new rates include:
- Two-year fixed 60% LTV with £490 product fee; rate: 4.74% (reduced by 0.55%)
- Two-year fixed 60% LTV with £0 product fee; rate: 5.04% (reduced by 0.45%)
- Two-year fixed 75% LTV with £490 product fee; rate: 4.89% (reduced by 0.45%)
- Two-year fixed 75% LTV with £0 product fee; rate: 5.19% (reduced by 0.35%)
- Five-year fixed 60% LTV with £490 product fee; rate: 4.39% (reduced by 0.35%)
- Five-year fixed 60% LTV with £0 product fee; rate: 4.59% (reduced by 0.40%)
- Five-year fixed 75% LTV with £490 product fee; rate: 4.44% (reduced by 0.40%)
- Five-year fixed 75% LTV with £0 product fee; rate: 4.64% (reduced by 0.40%)
first direct said the new rates complement a range of existing support measures for customers looking to secure a mortgage, including the option for them to make unlimited overpayments, terms of up to 40 years, no booking fee on some mortgage options, or fixed at £490, with no additional charge for advice from advisors and free legal fees for remortgage applications.
Last year, first direct also launched a 5% deposit mortgage, making it one of just a few challenger banks in the UK to enter the 95% LTV market. first direct also offers an agreement in principle (AIP) for up to six months – double that of the typical AIP.
“We wanted to reduce the cost of taking out a fixed rate mortgage because we recognise that many customers want peace of mind in what remains an unpredictable market,” Chris Pitt, chief executive at first direct, said.
“We’ve seen a significant spike in interest for our two-year deals in the last few weeks, whereas applications for our five-year deals have remained consistent. It’s clear that customers are interested in those products, hence why we’ve focused on delivering better value where there is demand.”
The full range of rates is also available on its website.
