First Direct launches sub-2% fix

The new range includes a 1.99% 3 year fixed rate at 65% LTV and a2.39% 5 year fixed rate at 65% LTV.

For borrowers looking for the certainty of a long term fixed rate, the bank has also introduced a suite of low fee 10 year fixed rate mortgages:

- 65% LTV - 3.49% with a £450 fee
- 75% LTV - 3.89% with a £450 fee
- 85% LTV - 4.29% with a £450 fee

Borrowers can make unlimited overpayments or lump sum payments throughout any fixed rate period without any penalties. Where the mortgage is repaid in full an early repayment charge is payable of 3% in the year fixed rate, and 2% for the remainder of the fixed rate term.

Andrew Forbes, Head of Products at First Direct, commented:  

"As the market continues to see a high demand for fixed rate mortgages, we are seeing more customers seek the certainty of a longer term fixed rate product.  Our new deals offer the prospect to protect against future rate increases, which will appeal to homebuyers and remortgagers alike."