First Direct are offering free switching incentives until 31st January, the deal gives home owners free legal fees and a free standard valuation. They are also offering to pay any enquiry fees the current lender has.
The deal is based on borrowing 75% of a home’s value and could give home owners a two year fixed rate of 3.39%, a five year fixed rate of 4.29% and also a lifetime offset tracker mortgage rate of 2.99%. I can hear you all asking now “What’s the catch?” There doesn’t appear to be one. The borrower will have to pay First Direct’s mortgage arrangement fee which stands at £99.00 although this appears to be considerably cheaper than most arrangement fees currently being levied, and with the lifetime tracker having no early repayment charge this must be worth a look surely?
Lloyds TSB also introduced, on 7th January, its lowest ever three year fixed rate mortgage available to first time buyers, house purchasers and home owners whose loan to value is 75% or below. With a rate of 3.74% (or 3.94% for non-current account customers) there is, however a product fee payable of £1495.00 and an early redemption charge payable of a maximum of 3% in year one, reducing to 1% in year three.
Stephen Noakes, Commercial Director of Mortgages at Lloyds TSB comments:
"This product has been designed to give our customers choice. For some borrowers having low up front costs is a priority, but with increasing commentary about potential interest rate rises over the coming year, many borrowers will be looking for the security of lower monthly payments for the next three years which this product provides."
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