First-time Buyers

Direct lenders Chelsea and First Direct continue slashing rates

Adam Williams
Written By:
Adam Williams

Direct-only lenders Chelsea Building Society and First Direct have made further rate cuts to their respective product ranges.

Chelsea BS, which last week lowered its headline 60% LTV two-year fixed rate product to 1.74%, has now made further rate cuts and lowered fees.

From today, it will offer a two-year fix up to 75% LTV at 2.54%, a reduction of 10bps on its previous rate. The fee on this product will also be cut to £745 and a £500 cashback offer is available.

The mutual has cut rates by £150 across its entire range, with all of its fees now between £245 and £1,545.

Fellow direct-only lender First Direct has also cut rates on three of its products. The lender will offer a three-year fixed rate product at 2.49% with a £1,499 fee, a five-year fix at 2.64% with £1,399 fee and a 2.38% tracker with £1,699 fee. The trio of products are available up to 65% LTV.

Andy Forbes, head of retail products at First Direct, said: “Over the last month we have seen competition increase in the mortgage market. In particular our five-year fixed rates have been extremely popular.

“In response to this demand we have lowered the rates on many of our five year fixed rates, to ensure our customers have access to our most competitive rates.”

“We keep our product range under constant review to ensure our mortgages are always competitive across all LTV tiers,” added Chelsea Building Society product manager Sunjeev Sahota.

“This 75% product is ideal for first-time buyers with a larger deposit, or second steppers or homeowners wanting to remortgage who have at least 25% equity in their property.

“By reducing product fees across our product range we are responding to customers, many of whom are seeking to minimise their upfront costs when completing their Chelsea mortgage.”