First Direct’s notable reductions include a 60% loan to value (LTV) two year fix cut by 0.05% to 1.44%, and 75% loan to value two year fix cut by 0.10% to 1.79% and both products are fee free. Its 85% LTV two-year fix has also been cut, falling by 0.15% to 2.59% and its 90% LTD two-year fix by 0.05% to 3.34% again both fee free.
In addition, the 75% LTV 5-year fix has been cut by 0.05% to 1.64%, and the 85% LTV by 0.10% to 2.79% – both offerings include a £490 fee.
The commercial director at first direct, said that they were seeing increased demand among homebuyers looking for shorter term 2 and 5-year fixed rates. In response they have reduced their already competitive rates even further. They understand that giving borrowers a choice of either fees and fee free deals gives them more flexibility when looking at their mortgage needs.