first direct makes mortgage affordability changes and cuts mortgage rates across high LTVs

first direct has today announced a change to the stress rates used in the mortgage affordability calculation, a move that could benefit around 85% of mortgage applicants, allowing them to borrow an average of £22,000 more.

The lender is also applying a range of rate reductions of up to 0.14 percentage points across over 100 products, including its range for first-time buyers, home movers and existing customers, with a focus on reductions on higher LTV products. With 90% LTV mortgages now starting at 4.60%, the move is designed to support those with smaller deposits. The bank has increased some rates in the lower LTV brackets for remortgage products.

first direct has also reduced the rate on its Lifetime Tracker by up to 0.44 percentage points, with the product range now starting at 5.30%.

For a full list of rates, visit: Our Mortgage rates | first direct

“We want to support our customers on their home ownership journey and the reduction to our stress rates reflects that we are committed to make owning a home more accessible. The changes will benefit the vast majority of our existing customer base when they decide to remortgage or take out a new product."

“On top of this, we are pleased to be applying more reductions to our rates. We have featured in best-buy tables consistently this year, and this time we are focused on applying rate cuts that will benefit people with smaller deposits by reducing the cost of lending in those higher LTV brackets."

“As always, 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.”

• allowing customers to make unlimited overpayments, whenever they choose
• maximum term up to 40 years (subject to eligibility), helping reduce monthly payments for customers and for existing customers who wish to extend their term
• an Agreement in Principle (AIP) for up to six months, giving buyers much-needed time to find their perfect home
• current booking fees at a low of £490, with no additional charge for advice from advisors
• earlier this year, first direct also introduced differential pricing for different buyer types so that the bank can ensure it offers competitive products tailored to our customers’ specific needs
• customers can also transfer their booking fee to another fee paying rate if rates reduce further
• free legal fees for re-mortgage applications
• access to a competitive savings rate of 7% on its Regular Saver Account, for first direct customers looking to save up to £300 monthly

first direct mortgages are only available online and over the telephone and do not operate through mortgage brokers. A number of useful guides and calculators are available on this website. 

For further information please email Leila.taleb@hsbc.com.

first direct provides mobile banking, online and telephone services to its 2 million customers and offers a full range of personal banking products including its multi-award winning current account and mortgages. It’s been recognised as being a pioneer of amazing customer service by numerous independent third parties including The Competition and Markets Authority, Which?, Moneywise, Moneyfacts and Moneysavingexpert.com Opens an overlay [Will show a security message first]. As well as its Facebook page, first direct uses social media to engage with customers through LinkedIn Opens an overlay [Will show a security message first], Instagram, and X.