first direct cuts cost of fixed rate mortgages

first direct is reducing the cost of its popular 2 year fixed rate mortgages this Friday, 30 May 2008.

The new rates are:

2 year fixed rate at 5.59% (6.3% APR); £499 booking fee and £999 arrangement fee.
(Previous pricing: 5.76%; £499 booking fee and £1,499 arrangement fee.)

Low fee version: 2 year fixed rate at 5.89% (6.2% APR); £99 booking fee and £399 arrangement fee.
(Previous pricing: 5.99%; £99 booking fee and £399 arrangement fee.)

All these mortgages revert to the bank's standard variable rate, currently 6.00%, at the end of the fixed term. The maximum loan size remains at £400,000 and first direct has not changed its maximum loan to value (LTV) of 80 per cent.

The pricing of the bank's 5 and 10 year fixed rate mortgages is unchanged.

Chris Pilling, first direct's chief executive, said: "We regularly review our fixed rate mortgage offers to make sure they're competitive. Today, we're reducing the cost of our popular two year fixed rates, which is likely to give them a prominent place in the best buy tables."

For more information, visit firstdirect.com.