first direct has cut rates by up to 0.30% across its range of repayment mortgages, with more than 100 products repriced for first-time buyers, movers and those looking to remortgage.
The lowest rate available is for the 60% loan-to-value (LTV) 5-year fixed standard, on offer at 4.13% for first-time buyers and movers.
The product remains available for existing customers at a lower rate of 4.10%.
To support those with smaller deposits making their first steps onto the ladder, first direct has applied some of its largest rate reductions to higher-LTV mortgages of 90% and 95%, with cuts of up to 0.29%.
The 5-year fixed standard at 90% LTV is now priced at 4.74%.
The most significant reduction is available for remortgage customers on the 2-year fixed standard mortgage at 85% LTV, now available at 5.04%.
Liam O’Hara, head of mortgages at first direct, said: “We’re really pleased to be starting the New Year with rate reductions across all of our repayment ranges of 2-, 3- and 5-year fixed rate mortgages.
“We are entirely focused on supporting customers on their journey to home ownership, whether they’re making their first step onto the ladder, upgrading their home, or looking for a competitive remortgage option.
“We will continue to review our pricing regularly throughout the year to ensure we offer the best value we can for our customers.
“There’s also lots of other ways we help our customers get the best value from their mortgage beside the interest rates we offer: our mortgages are fully flexible with free unlimited overpayments on all our ranges, we offer 40-year maximum terms and our product booking fees are capped at £490.”
Nick Mendes, mortgage technical manager and head of marketing at John Charcol, said: “First Direct’s decision to reduce mortgage rates by up to 0.30 percentage points across its repayment mortgage range is a welcome move for borrowers.
“It reflects the competitive nature of the market and offers potential savings for first-time buyers, home movers, and those looking to remortgage.
“The substantial reductions in higher-LTV mortgages, such as the 5-Year Fixed Standard at 90% LTV, now priced at 4.74%, will be particularly beneficial for first-time buyers with smaller deposits.
“However, it is important to note that First Direct operates solely as a direct lender, meaning its products are not accessible through mortgage brokers.
“This makes it even more crucial for borrowers to consult with a mortgage broker. Brokers provide a comprehensive overview of the market, ensuring that borrowers explore all available options and secure the most suitable deal, especially in a changing market.
“A broker’s expertise can also help borrowers navigate details such as early repayment charges, product flexibility, and long-term affordability – factors that may not always be obvious from headline rates.”
