First Direct launches 5% deposit mortgages
The lender said the 95% loan-to-value products are for first-time buyers and home movers looking to borrow up to £550,000.
The mortgages available, which can be held up to a maximum 40-year term, are:
- Two-year fixed rate at 2.79%; zero product fee; free standard valuation
- Five-year fixed rate at 2.94%; zero product fee; free standard valuation.
First Direct claimed its five-year 2.94% mortgage offer “is the most competitive on the market for 5% deposit holders from a major UK lender”.
The deals are also available to existing First Direct borrowers looking to port their mortgage, and customers can make unlimited overpayments.
It added that it offers an Agreement in Principle (AIP) for up to six months – double that of the typical AIP – giving buyers much-needed time to find their perfect home.
‘Viable way of helping people onto the ladder’
Chris Pitt, CEO of First Direct, said: “The stamp duty holiday turbocharged the property boom, which has shown few signs of abating. While the property market continues to speed along in the fast lane, first-time buyers have been left behind. While house prices continue to outpace deposits, we see this as a viable way of helping people onto the ladder.”
First Direct mortgages are only available online and over the telephone. They’re not available through brokers.