Cuts on Mortgage Rates: First Direct

First Direct have announced further reductions to their mortgage rates in yet another bid to ease the financial pressures faced by both buyers and sellers on the 2011 market and encourage growth in what so far has proven to be a recalcitrant and increasingly precautious industry arena.

First Direct have now cut over a third of their mortgage product rates, which now includes a reduction on their popular 85% LTV 5-year Fixed Rate Limited Edition Fee Free Repayment Mortgage by a full 0.5% to a significant 44.9%. As a result, three of its most popular mortgage products now feature in the best buy rankings, making the mortgage lender one of the most attractive service providers in the country at the moment.

Customers can now also save over 2.5% by switching from a rival lender's SVR rate, giving a monthly saving of around GBP120 more per month than the closest competitor. This will also have a knock on effect on conveyancing fees payable to conveyancing solicitors, which will be judged in accordance with the bank's legal criteria.

The move comes just two months after the leading mortgage lender announced reduced rates on a further selection of five of its most popular mortgage products as well as a fixed charge of GBP99 on loans for all of its products to ensure that customers are not forced to pay monthly service charges on top of monthly loan repayments. The fixed fee rate also represents a discount of over GBP900 to prospective borrowers, which, when coupled with lower rates on conveyancing fees makes the internet and telephone based bank certainly the strongest candidate for those customers negotiating the mortgage lending landscape for the first time.

This development has proven to simplify indicators of market competitiveness and has posited First Direct as one of the most economically viable on the mortgage rates marketplace. Originally developed to reintroduce First Direct to the Mortgage lending marketplace, these moves have proven to be so popular this year that in April the firm was forced to put a freeze on mortgage approvals due to unprecedented buyer interest.

The firm has also become increasingly popular amongst borrowers and conveyancing solicitors due to its offset mortgages, which have so far served to allay fears and industry scepticism concerning the feasibility of what could be termed a seasonal sale in rates on mortgage products. First Direct's offset mortgages now enable customers to posit their savings against their mortgage payment s and pay interest only on the remaining balance, although standard variables still apply to fixed rate services.

To find out more about how First Direct's mortgages rates cuts could affect you, contact our team of experts at www.onlineconveyancing.co.uk.