HSBC-owned bank first direct has cut interest rates on more than a third of its mortgage deals – that's 20 out of the 58 different offers in its current range.
The biggest cut of 0.5 of a percentage point is on the 85% loan-to-value (LTV) five-year fixed-rate deal with no fees, which now charges 4.49%.
For 65% LTV, it's also cut the rate on the five-year fix to 3.49% with a £1,499 fee. The lowest five-year fixed-rate on offer at the moment is Chelsea Building Society's 3.29% with a fee of £1,495 on 70% LTV.
On a smaller deposit, the first direct deal appears to be the market leader at the moment - its nearest rival is its owner HSBC with 4.89% on 90% with no fee. And it's not far behind on larger deposits either, at just 0.2 of a point more than Chelsea.
First direct has also chopped the rate on its 65% LTV offset tracker to 1.58% plus base rate - making a current pay rate of 2.08%. There is a £1,499 fee with this deal.
The two-year fee-free tracker on 85% LTV is now 2.99% plus base rate. The cheapest two-year tracker rate is currently Santander's 1.45% plus base, making a current rate of 1.95% with a whopping £1,995 fee on a maximum 60% LTV.
Although trackers are cheaper than fixed rates at the moment, most new borrowers appear to prefer the certainty offered by a fixed deal. For first-time buyers, five-year fixed deals are often popular as they offer the certainty of repayments during the expensive early years of being a first-time homeowner.
|Lender||Initial Rate||Duration||Standard Rate||Overall Cost For Comparison||Max Loan To Value||Fee|
|1.99%||2 years||3.94%||3.7% APR||60%||£1499|
|2.45%||2 years||5.69%||5.4% APR||75%||£999|
|2.49%||2 Years||5.19%||4.9% APR||75%||£495|
|2.49%||2 years||4.99%||4.7% APR||70%||£499|
|2.5%||To Feb 2014||3.5%||3.4% APR||60%||£1945|
|2.59%||2 years||5.64%||5.1% APR||75%||£990|
|2.65%||3 years||5.49%||4.8% APR||75%||Nil|
|2.69%||2 years||4.99%||5% APR||75%||£795|
|2.74%||To Dec 2013||4.99%||4.8% APR||75%||Nil|
|2.89%||2 years||4.99%||4.7% APR||75%||£795|
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