First Direct review their mortgage rates.

A selection of First Direct’s mortgages from their residential range have been subject to a rate review. There have been rate increases as well as cuts and the products affected include ones where a fee applies as well as a number of fee-free options.

To reduce the up-front costs its customers face, First Direct have sliced its fees from £1450 to £725. To account for the adjustment, some rates have increased by up to 0.20%. The details are:

• 2 year fix for up to 60% LTV, the mortgage rate has increased by 0.10% to 1.24%
• 5 year fix for up to 60% LTV, the rate has increased by 0.10% to 1.74%
• 5 year fix for up to 80% LTV, the rate has increased by 0.20% to 1.44%

However, rates have been reduced on the following fee-free mortgages:

• 2 year fix for up to 60% LTV, the rate is now 1.49% - a reduction of 0.10%
• 2 year fix for up to 75% LTV, the rate is now 1.59% - a reduction of 0.10%

These adjustments to pricing can affect how much you pay for your mortgage overall. Assessing which one represents the best value can be confusing. This is why it is important to factor in all the costs as well as the fees/no fees and other incentives, to complete a full like-for-like comparison of your mortgage options.

Failure to do this could result in choosing a less than favourable home loan solution where another would have represented better all-around value. 

To avoid a costly mortgage mistake call 0800 048 8828.