First Direct has cut both the booking and arrangement fees across its mortgage range.
The lender claims the changes will give homebuyers an even greater choice of products to suit different financial needs.
Until further notice the fees have been reduced by 50 per cent from £1,450 to £725.
The lender said that customers had told it that they wanted more fee-free products or offerings with lower upfront fees.
The revised fee paying mortgage range include two 60 per cent loan to value (LTV) two-year fixed rate products with £725 fee at 1.24 per cent and 1.74 per cent.
The two 75 per cent LTV two-year fixed rate products at 1.34 per cent and 1.89 per cent, increased by 0.15 of a percentage point and 0.05 of a percentage point, respectively.
Under the revised fee offerings there is an 80 per cent LTV five-year fixed rate at 1.44 per cent, an increase of 0.2 of a percentage point.
The 85 per cent LTV five-year fixed rate is at 1.49 per cent, and increase of 0.15 of a percentage point, while the 90 per cent LTV five year fixed rate is at 2.09 per cent, up by 0.2 of a percentage point.
The revised fee free mortgage range, includes a 60 per cent LTV two-year fixed rate fee saver at 1.49 per cent, reduced by 0.1 of a percentage point.
The two 75 per cent LTV two-year fixed rate fee saver products are at at 1.59 per cent and 1.99 per cent; reductions of 0.1 of a percentage point and 0.05 of a percentage point, respectively.
The 85 per cent LTV two-year fixed rate fee saver is at 1.74 per cent, reduced by 0.05 of a percentage point.
Provider view:
Nick Harrison, head of products at First Direct, said: “We always aim to offer outstanding customer value, and customers have told us they’d prefer fee free or lower upfront fees with their mortgage so we’re acting on this. There’ll be some rate changes to accommodate this, but it will help provide an even more attractive proposition to customers looking to remortgage or purchase their first home.
“For us, amazing customer service runs through everything we do, including ensuring our mortgage advisers are available seven days a week so that we can fit in with our customers’ lives.”
Adviser view:
Carl Shave, adviser at The Mortgage Centre said: “The new deals introduced by First Direct look to position them well in an already competitive rate and fee sensitive market. Rate increases have been made to some of their products to offset the reduced fees but, the products should open up their offers to a wider market and help them pick up a share of the potential £35bn worth of remortgage business into October.”
Charges:
£725 fee or fee-free depending on product chosen.
Verdict:
As the mortgage market continues to be competitive the likelihood is for more fee-free deals out there, as companies vie for a slice of the remortgage market.
