Mortgage experts are hoping that First Direct’s re-entry into the market signals an easing in the mortgage market and better times ahead for borrowers.
Now it charges 5.76 per cent, with a £499 booking fee and £1,499 arrangement fee. Borrowers can get a two-year fix of 5.75 per cent from Loughborough building society. Skipton building society offers 5.79 per cent fixed for two years up to 95 per cent loan to value with a £799 fee.
will cut the interest rates on some of its mortgage deals tomorrow. Last week, two of the Halifax ‘s biggest mortgage lenders, the Abbey and the Nationwide, also made cuts to the interest rates on some of their home loans. Abbey followed suit by cutting its trackers by 0.05 points and its five-year fix by 0.17 points to 5.75 per cent. UK
First Direct withdrew from the mortgage market on April 1 after being deluged by new applicants desperate to lock into a competitive deal as rivals raised their mortgage rates or withdrew offers due to the credit crunch.
LONDON (Reuters) – First Direct, the online and telephone lender owned by HSBC, will resume offering mortgages to borrowers on Monday after withdrawing from the market six weeks ago due to rocketing demand. First Direct said it had cleared a backlog of mortgage application approvals that had forced it to suspend its offer to people without existing accounts at the bank on April 1. It said at that time demand had surged after rivals raised their mortgage rates or withdrew offers due to the credit crunch. Its 2-year fixed rate of 4.95 percent had been one of the best on offer to homeowners.