On the First Direct changes, the cheapest rate is now 3.83%, which is available on the lender’s 60% LTV Five-Year Fixed Standard available across three different buyer categories: first-time buyers, home movers and existing customers looking to switch.
In the two-year range, First Direct’s biggest rate cut of 0.32 percentage points applies to the 80% LTV Fixed Fee Standard mortgage, now available at 4.64%.
In the three-year range, the 80% LTV Fixed Fee Standard now is priced at 4.68%, down 0.21 percentage points, whereas the five-year equivalent is at 4.20%, reduced by 0.32 percentage points.
The most significant rate cuts of up to 0.35 percentage points were made within the remortgage range for new customers.
The Two-Year Fixed Standard range saw the largest reductions of between 0.21 and 0.35 percentage points depending on LTV, starting at 4.27% for the 60% LTV. The Five- Year Fixed Standard at 60% LTV starts at 3.94%, whereas the Three-Year starts at 4.29%.
For existing customers, the Lifetime Tracker now starts at 5.49%, down from 6.24% for the 60% LTV Fixed Fee Standard product.
Liam O’Hara, head of mortgages at First Direct, said: “Today, we are applying another round of rate reductions to our mortgages across all fixed rate repayment ranges, with our Lifetime Tracker also seeing significant reductions.
“This reflects our focus on reducing the rate of borrowing for customers when we can – we review our pricing very regularly to ensure the best value possible for our customers.
“This time round, we are seeing the biggest rate reductions on the 80% LTV range, but we have applied cuts across the board up to 95% LTV. For existing customers, we’ve also reduced our Lifetime Tracker by up to a significant 0.75 percentage points, which is good news for those customers that don’t want to commit to a fixed rate in this time of uncertainty. We’re also in a position to reduce rates on our remortgage products, which will benefit those people coming off a fixed rate and looking for competitive options.”
Santander slashes mortgage rates
High street lender Santander has also announced it is lowering select new business and product transfer rates by up to 0.29% with sub-4% deals available.
The changes to its new business and product transfer rates will come into force from Tuesday 17 September and its lowest 60% loan to value (LTV) residential purchase fixed rates with a £999 fee will be a two-year deal at 3.99%.
The lender’s cheapest three-year fixed rate will come to 3.94% and its five-year fixed rate will stand at 3.8%.
Santander said that in its new business range, selected standard residential fixed rates were reducing by between 0.02% and 0.29% for purchases and remortgages, while all new business new build fixed rates will fall by around 0.04% and 0.23%.
The bank added that all new business buy-to-let five-year fixed rates will decrease by between 0.05% and 0.09%.
Also, on the buy-to-let side, Santander will bring out a new 75% LTV buy-to-let two-year tracker rates for purchases and remortgages, and it will withdraw its one-year fixed buy-to-let rate at 75% LTV. This applies to its new business and product transfer range.
Within its product transfer range, the lender said that selected residential fixed rates will fall by around 0.04% and 0.2% while selected buy-to-let fixed rates will contract by around 0.08% and 0.09%.
Santander previously changed residential and buy-to-let affordability rates last week following the base rate cut.
Related: Mortgage broker John Charcol launches best buys table: What you need to know
Extracts of this article were first published in YourMoney.com’s sister title, Mortgage Solutions. Read Santander cuts new business and PT rates with sub-4% deals for sale
