First direct has announced rate reductions of up to 0.27 percentage points across more than 100 residential mortgage products, with new rates starting from 3.75%.
The changes, effective immediately, will see lower fixed rates available to both first-time buyers and home movers, following the bank’s recent update to its lending policy which allows eligible first-time buyers to borrow up to 5.5-times their salary on loans up to 90% LTV.
The 3.75% rate is available on first direct’s 60% LTV 2-year fixed fee standard mortgage, open to first-time buyers and home movers.
The largest cuts apply to the 80% and 85% LTV 3-year fixed repayment products, each reduced by 0.27 percentage points to 4.06%, while the 90% LTV 3-year fixed fee saver has fallen by 0.24 percentage points.
All two-year fixed repayment options up to 85% LTV in the Fixed Fee Standard range are now priced below 4%.
Earlier this year, first direct also adjusted its stress rates for affordability assessments, allowing around 85% of applicants to borrow an average of £22,000 more.
Liam O’Hara, head of mortgages at first direct, said: “We are committed to doing everything we can to support first-time buyers to get on the property ladder, by both making borrowing as affordable as we can and by enabling people to borrow more, within the parameters of responsible lending.
“Recent changes to our mortgage policy combined with the new rates enhance what is already a great proposition centred around support for our customers and flexibility.”
Additional features available across first direct’s mortgage range include unlimited overpayments, maximum terms up to 40 years (subject to eligibility), free legal fees on remortgages, and an Agreement in Principle valid for six months.
Customers can also transfer booking fees if rates fall further and access a 7% Regular Saver Account when saving up to £300 per month.
The bank said its differential pricing model enables it to tailor products for different buyer types while maintaining competitive value across the board.
