first direct cut rates to sub 4% across dozens of mortgage products as it announces over 100 reductions

first direct has today announced rate reductions of up to 0.44 percentage points across its entire range of two, three and five-year fixed rate repayment mortgages.

As a result, dozens of mortgages are now priced under 4%, with the cheapest rate now 3.84%, available on first direct’s 60% LTV 2 and 5 Year Fixed Standard mortgages, with a booking fee of £490. This is accessible to first-time buyers, home movers and remortgage customers, as well as for existing customers.

The most significant cuts have been made across higher LTV products on first direct’s 2 Year Fixed range, with the 95% LTV 2 Year Fixed Fee Saver mortgage now priced at 4.94% and the 80% and 85% LTV products seeing reductions of 0.39 percentage points, both now priced at 4.14%.

The award-winning lender also recently 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.

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

“Our mortgage range is designed to allow maximum flexibility for our customers, in order to help people achieve their home ownership dreams in a way that works best for them. As part of this, we offer unlimited overpayments, maximum terms of 40 years, and a range of other features that help people on their journey up the property ladder. Our recent changes to our affordability criteria also reflect our commitment to making home ownership more accessible."

“We are pleased to now be in a position to reduce our mortgage rates further, with dozens of products now priced under the 4% mark. We have featured in best-buy tables consistently over the last few months, and we are committed to offering value for our customers."

“As always, we continue to review our pricing regularly to ensure the best value we can for our customers.”

• 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
• first direct has 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.