First direct cut headline mortgage rate to 3.79% as price war continues

Lender first direct today slashed its mortgate rates by up to 0.25% across its range of 100 products with deals starting from 3.79% on a five year fix for owners and first time buyers with a deposit of at least 40%.

The largest rate reductions are in the three-year fixed range with rates on the the 85% loan to value down to 4.74% from 4.99%.

In the two-year fixed range, interest rates now start at 4.09% for existing customers and new remortgage customers and at 4.14% for first-time buyers and home movers in the 60% loan to value bracket.

Home loan prices have been falling steadily since the summer as City swap rates slowly subside in anticipation of further cuts from the Bank of England through the Autumn and winter.

Liam O’Hara, head of mortgages at first direct said :“We’ve cut rates across all our repayment ranges of two, three and five year fixed products, with rates now starting at a competitive 3.79%.

“The vast majority of our products are now priced well under 5%, with our 5 Year Fixed range offering rates to first-time buyers and home movers under that bracket all the way up to 90% LTV.

“It’s also great to see remortgage rates continuing their downward trajectory, with the 3.79% rate available to new remortgage customers. We’re starting to see more activity in the remortgage market, with more customers shopping around for the best deal, so it’s great to be able to make our most competitive price available to those customers.

“We continue to review our pricing regularly to ensure the best value we can for our customers. We also try to offer value in other ways: our mortgages are fully flexible with free unlimited overpayments on all our ranges, as well as a 40-year maximum terms and product booking fees capped at £490.”

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