Mortgages  

First Direct reduces fixed rate mortgages

First Direct reduces fixed rate mortgages

First Direct has reduced all of its fixed rate mortgages at 65 and 75 per cent loan-to-value from today (2 January).

This equates to a 1.99 per cent three-year fixed rate at 65 per cent LTV with a £1,450 fee and a 2.39 per cent five-year fixed rate at 65 per cent LTV with a £1,450 fee.

For borrowers looking for a more long term fixed rate, the bank has also introduced a suite of low fee 10-year fixed rate mortgages.

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These include a 65 per cent LTV deal at 3.49 per cent with a £450 fee, 75 per cent LTV at 3.89 per cent with a £450 fee, and 85 per cent LTV at 4.29 per cent with a £450 fee.

Borrowers can make unlimited overpayments or lump sum payments throughout any fixed rate period without any penalties.

Andrew Forbes, head of products at First Direct, commented that as the market continues to see a high demand for fixed rate mortgages, the bank is seeing more customers seek the certainty of a longer term fixed rate product.

He said: “Our new deals offer the prospect to protect against future rate increases, which will appeal to homebuyers and remortgagers alike.”

peter.walker@ft.com