First Direct is back in the mortgage business after announcing a re-entry into the market seven weeks since their withdrawal.
The HSBC owned online and telephone lender has begun selling mortgages again to new customers. It is speculated that the re-entry by First Direct could signal an improving market and a better future for borrowers.
Since First Direct pulled out of the market, rates have risen significantly. It remains competitive but is not the cheapest on the market.
The bank's two-year fixed rate of 4.75% had been one of the best on offer to homeowners at a monthly cost of £594 on a typical £150,000 interest-only homeloan.
Today the bank charges 5.76%, with a £499 booking fee and £1,499 arrangement fee. Monthly repayments would be £720 on £150,000. All its deals are only available up to 80 per cent loan to value and on loans of £400,000 or less.
The bank's two-year fixed rate of 4.75% had been one of the best on offer to homeowners at a monthly cost of £594 on a typical £150,000 interest-only homeloan.
Borrowers can get a two-year fix of 5.75% from Loughborough building society. Monthly repayments would be just £1 less at £719 but the deal has a much lower £649 arrangement fee and is available up to 90% loan to value. Since First Direct pulled out of the market, rates have risen significantly. It remains competitive but is not the cheapest on the market. Skipton building society offers 5.79% fixed for two years up to 95% loan to value with a £799 fee.
