Mortgage Rates Take a Turn: First Direct Cuts Rates for First-Time Buyers

In a move that could have a significant impact on first-time buyers’ homeownership journeys, First Direct has slashed its mortgage rates. The lender has lowered its rates by up to 0.17 percentage points, affecting its range of two, three, and five-year fixed repayment mortgages available to first-time buyers and home movers.

First-time buyers may soon find it easier to get on the property ladder

Among the reductions is a cut on a two-year fixed-rate deal for borrowers with a 15% deposit. This rate is now set at 4.99%, down from 5.16%. This development comes on the heels of recent rate cuts by other major lenders last week. Halifax, HSBC UK, Barclays, Santander, NatWest, and Yorkshire Building Society were among those to shake up their ranges, with some lenders cutting their mortgage rates more than once over the past couple of weeks.

“Market conditions had allowed it to reduce rates on several products across its range.” - Ben Merritt, Yorkshire Building Society’s director of mortgages

The latest move by First Direct is seen as a response to the current market conditions, which have created an environment conducive to rate cuts. As the mortgage market continues to evolve, it remains to be seen how other lenders will respond to this development.

A boost to first-time buyers’ hopes of owning a home

The reduction in mortgage rates is expected to have a positive impact on the property market, making it easier for first-time buyers to get on the ladder. As the market continues to shift, it’s essential for prospective buyers to stay informed about the latest developments and explore their options carefully.

Mortgage calculators can help buyers plan their finances

With mortgage rates changing rapidly, it’s crucial for buyers to have a clear understanding of their financial situation and options. Using mortgage calculators and staying up-to-date with the latest news can help them make informed decisions about their future in the property market.