Online bank first direct has slashed mortgage rates across its product range for the second time in two weeks.
Rates across two, three and five-year fixed rate mortgages for both new and existing customers have been reduced, with first direct’s lowest-priced mortgage now offered at 4.87 percent.
The bank’s cheapest mortgage is the five-year fixed standard at 60 percent Loan to Value (LTV), with its 70 percent and 75 percent LTV products also now priced below five percent at 4.92 percent for both.
Chris Pitt, CEO of first direct, said: “After announcing rate reductions last week, we have once again reduced the cost of borrowing on some of our most popular products.
“Our cheapest five-year rate is one of the most competitive in the market if you consider the low or no-fee feature that we implement across our product range – which means that set-up fees are capped at a maximum of £490.”
Mr Pitt added: “We have also cut rates significantly for switchers, with reductions of up to 0.33 percent.
“We will continue to regularly review our mortgage range to ensure it’s competitive for our customers, whether they’re new to the bank or existing first direct customers looking to switch to a new deal.”
Across first direct’s three-year mortgage range, rates have been reduced for 60 percent, 70 percent and 75 percent LTV products and now start at 5.29 percent.
In the two-year fixed rate space, new customer rates have also reduced for the 60 percent, 70 percent and 75 percent products, with the range starting at 5.36 percent.
Switcher rates in the two-year re-mortgage space are now priced even lower, with new customers seeing rate reductions of up to 0.33 percent.
The cheapest two-year product for switchers is the Two Year Fixed Standard at 60 percent LTV priced at 5.27 percent.
But first direct isn’t the only bank to slash rates this week. The West Brom has today announced reductions of up to 30 basis points across its three year fixed rate mortgage range.
Highlights across the range include a rate of 5.44 percent for remortgages at 75 percent LTV, with a competitive fee of £999 and £500 cashback.
Gareth Madeley, head of product at the West Brom, commented: “While rates have dipped in recent weeks, persistently high costs of living mean that it’s as important as ever for us to offer borrowers a competitive product when they come to remortgage.
“These cuts will see rates reduce across our entire three-year range, keeping fees to a minimum with the additional support of cashback.”
Commenting on the market, Rachel Springall, finance expert at Moneyfacts, said: “Fixed mortgage rates have fallen across the spectrum, signalling a positive change in the market.
“Overall, the average two and five-year fixed rates have now fallen for the second month running, so borrowers could find cheaper deals to choose from. These are encouraging signs for borrowers who may be looking for a new fixed rate deal.”
