First Direct announces rate cuts across its fixed-rate repayment mortgage range

They include a 10-year fixed mortgage for people with a 40 per cent deposit, with a rate of 3.99 per cent, reduced by 0.98 percentage points from 4.97 per cent previously. Also for people with a 40 per cent deposit, First Direct will offer a five-year fixed mortgage priced at 3.99 per cent – a rate which is being reduced by 0.65 percentage points.

The rates will be available to new and existing customers. Among its two and three-year fixed rates, First Direct said fixed standard mortgages for people with at least a 15 per cent deposit will be priced at under 5 per cent, with the range beginning at 4.54 per cent for new customers and 4.49 per cent for switchers. For people with a 10 per cent deposit, deals will start at 4.69 per cent on First Direct’s five-year fixed standard mortgage.

Liam O’Hara, head of mortgages at First Direct, said: “We’re very pleased to be starting the year with the introduction of new sub-4 per cent mortgages, which will be available from tomorrow.”

HSBC UK has cut rates on its residential mortgage range by up to one percentage point, with several of its rates being below 4.00 per cent for the first time since April 2023.

More than 240 separate rates across HSBC UK’s residential and buy-to-let range have been reduced.

An HSBC UK spokesperson said: “Our latest changes mean that we are able to offer our existing customers five-year and 10-year fixed-term mortgages that are below 4 per cent for the first time since April 2023, alongside our lowest rate of 3.89 per cent for existing customers. We now also have over 150 mortgage options under 5.00 per cent for customers, the most we have offered under this level since April 2023.”

Earlier this week, Halifax launched new remortgage rates, including a five-year fixed-rate product at 5.27 per cent for homeowners with a 10 per cent deposit, which has a £999 fee. The previous rate for this deal was 5.68 per cent.

Amanda Bryden, head of Halifax Intermediaries and Scottish Widows Bank, said earlier this week: “We keep a constant eye on markets to ensure we offer value to new and existing customers.”