first direct has introduced rate reductions of up to 0.30%, reducing interest rates across its entire range of 2-, 3- and 5-year fixed rate mortgages and launching three products priced at 3.89%.
The 3.89% rate is available on the 60% loan-to-value (LTV) 5-year fixed standard, now available across three different buyer categories: first-time buyers, home movers and existing customers looking to switch.
Rate cuts have been applied to more than 100 products, with most mortgages now priced under 5%.
In the 2-year fixed space, the range starts at 4.29% on the 60% LTV 5-year fixed standard, which is also available as a 3-year fixed, starting at 4.19%.
The biggest rate reduction is on the 3-year fixed standard available to first-time buyers, home movers and existing customers, now on offer at 4.19% down from 4.49%.
In the 5-year fixed range, the most significant rate reduction was 0.23%, but all products up to 75% LTV available to first-time buyers, switchers and home movers were reduced by at least 0.20%.
In the remortgage space, rates were cut by up to 0.20%, with both the 2-year fixed standard and 2-year fixed fee saver now available at 4.59% and 4.79% respectively.
Liam O’Hara, head of mortgages at first direct, said: “We are really pleased to be reintroducing sub 4% rates, the first time we have been able to do so since January, as we cut rates across more than 100 products today.
“A range of factors impact our pricing decisions, but we are absolutely committed to supporting our customers by reducing the cost of borrowing when we can, whether they’re making their first steps onto the ladder, moving house or remortgaging.
“We have focused our rate reductions on our 2- to 5-year fixed rate range as we continue to see the highest demand for those products, and we’ve reduced rates across a broad range of LTVs to support a broad range of customers with different needs.
“It’s also worth remembering that our mortgages are fully flexible and that we offer free unlimited overpayments on all our range, as well as 40-year maximum terms and product booking fees capped at £490.
“Earlier this year, we also introduced differential pricing for different buyer types so that we can ensure we offer competitive products tailored to our customers’ specific needs.”