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10-year fixed rate mortgages launched by First Direct

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
08/07/2022

The deals offer long-term payment security to borrowers concerned about rising interest rates

First Direct has launched a new range of 10-year fixed rate mortgages.

This products are available to first-time buyers and home movers, as well as remortgagors and customers looking for additional borrowing.

The new deals are available to borrowers with a maximum loan-to-value (LTV) of 80%, who have a deposit or equity stake of 20% or more.

Borrowers can secure up to £550,000, and choose from a lower rate option with a £490 product fee, or a fee-free option with a higher rate.

The mortgages can be taken up to a maximum 40-year term and include a free standard valuation.

The new deals, launched in response to customer demand, include:

· A 10-year fix at 3.34%, up to 60% LTV with a £490 product fee

· A 10-year fix at 3.39%, up to 60% LTV with no fee

· A 10-year fix at 3.49%, up to 75% LTV with a £490 product fee

· A 10-year fix at 3.59%, up to 75% LTV with no fee

· A 10-year fix at 3.59%, up to 80% LTV with a £490 product fee

· A 10-year fix at 3.69%, up to 80% LTV with no fee.

The lender said it launched the 10-year fixed mortgages to help borrowers combat rising interest rates and give some long-term reassurance to homeowners.

The lender also offers customers the option to make unlimited overpayments, whenever they choose.

Chris Pitt, CEO of First Direct, said: “The cost of living crisis in particular has forced homeowners and prospective buyers to rejig their monthly incomings and outgoings, of which mortgage payments tend to take up the lion’s share.

“After a string of base rate hikes in 2022, the launch of this product is to give home owners and buyers long-term peace of mind while external volatility – such as soaring house prices and rising utility bills – shows no signs of abating.”

First Direct mortgages are only available online and over the telephone and not operate through mortgage brokers.