Fixed Rate  

First Direct cuts rates on repayment mortgages

First Direct cuts rates on repayment mortgages

First Direct has cut rates on its repayment mortgages by up to 0.1 per cent.

Borrowers can now opt for two-year fixes at 1.24 per cent up to 80 per cent loan-to-value (LTV) and 1.34 per cent up to 85 per cent LTV, both with a fee of £1,450.

Two-year ‘fee saver’ fixes – which have no booking fee, no arrangement fee and no standard valuation fee - include products at 1.74 per cent up to 80 per cent LTV and 2.39 per cent up to 90 per cent LTV.

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Standard five-year fixes now include rates of 1.69 per cent up to 60 per cent LTV and 2.14 per cent up to 85 per cent LTV, with a £1,450 fee.

Fee saver five-year options are available at 2.14 per cent up to 75 per cent LTV and 2.29 per cent up to 80 per cent LTV.

First Direct products are not available via intermediaries.

Nick Harrison, head of products, said: “We’ve cut the rates on our range of two and five year fixed rate mortgages, offering competitive rates on products to customers who want the certainty of a fixed repayment. At first direct, we aim to offer a wide choice of competitive products to suit customers’ needs.”

Mike Richards, director at London-based Mortgage Concepts Associates, said the rates were good but he was concerned they were not available to intermediaries.

He added: “The problem is they probably don’t have the infrastructure to offer these rates to brokers – they would probably be inundated - but there are similar rates available from high-street lenders.”

simon.allin@ft.com