First Direct has launched a range of three-year fixed-rate mortgages, while cutting rates across existing two- and five-year fixes by up to 30 basis points.
The lender says its new range starts at 5.79% for the three-year fixed standard at 60% loan to value. It is available to both new and existing customers, at up to 90% LTV.
The firm says the move is a response to “demand for this product” as borrowers search for options amid high interest rates.
Many of the homebuying market’s core two- and five-year deals were signed at sub-2% mortgage rates some two years ago, but the average rates on both of these terms now are well above 6%.
The average two-year fixed residential mortgage rate is down 2bps at 6.67% today, from yesterday, according to Moneyfacts.
The average five-year fixed residential mortgage rate is down a single basis point at 6.17% today, from the day before.
First Direct chief executive Chris Pitt says: “In the current market, many of our customers are telling us they don’t want to fix for five-years but want fixed-rate options that exceed two years.
“We have acted on the feedback we’ve received by launching this range of three-year fixed rates and offering more choice and flexibility to our customers.”
The lender adds that reductions among its core two- and five-year home loans, mean that its five-year fixed-rate range now starts at 5.24% on a 60% loan-to-value fixed standard product.
Its cheapest two-year product is the two-year fixed standard loan at 60% LTV, at 5.89%.
Other highlights among its rate reductions include:
Repayment range – new customers
Repayment range – existing customers
