Record Low Fixed-Rate Offered by First Direct
2 minute read
Recent news has reported of a battle in mortgage rates between a number of high street banks and lenders. Last month, Just reported on the news that Barclays would offer a mortgage with an interest rate of 2.99%, reflective of the lowest ever rate on that type of mortgage. The battle now appears to have heated up, with First Direct announcing a scheme offering their customers a five-year fixed mortgage of 2.28%. Customers looking for a longer-term deal will be able to sign on for 10 years at a fixed rate of 2.89%, marking a considerable lower rate than that offered by Barclays. However, those who look to take up First Direct on their offer will be required to put down a heavy 40% deposit, which could be a considerable turnoff for the majority of potential customers. Head of Products at First Direct, Andrew Forbes said, “Demand for fixed rate and we know that borrowers are looking for competitive rates that give them an element of flexibility. Our new deals allow customers to take advantage of the market’s lowest rates and protect themselves against future rate increases.
Who are the Other Major Players?
With the war between lenders seemingly becoming important business amongst its customers, the level of competition is growing, with some major players emerging to challenge First Direct.
As stated, Barclays are one of the main contenders in the war of the low fixed rates, having introduced their rate of 2.99% last month, before reducing it to 2.94%.
Santander have also joined the race to offer the best fixed rate and have matched Barclays rate of 2.94%.
Nationwide potentially offer the best rate, but the 2.84% rate is stated as being for existing customers only. Expect more high street banks and lenders to join the race before interest rates rise. Are you interested in a low fixed rate mortgage? Let us know your thoughts in the comments section below.