HSBC Holdings PLC (LSE:HSBA) online arm First Direct has cut rates across its range of 100 mortgage products as competition for homebuyers continues to intensify.
For buyers with a 40% deposit, the rate starts as low as 3.79% for a five-year fixed deal with a fee of £490, while three-year fixes with a 15% deposit drop to 4.74% from 4.99%.
Two-year mortgages now start at now start at 4.09% for existing customers and new remortgage customers and at 4.14% for first-time buyers and new borrowers.
Liam O’Hara, head of mortgages at First Direct said: “We’ve cut rates across all our repayment ranges of two, three and five-year fixed products, with rates now starting at a competitive 3.79%.
“The vast majority of our products are now priced well under 5%”
We’re starting to see more activity in the remortgage market, with more customers shopping around for the best deal, so it’s great to be able to make our most competitive price available to those customers.
First Direct’s move follows a week of cuts to rates by its rivals.
On Thursday, Barclays cut its cut five-year mortgage rate for a 40% deposit to £.71%, though this comes with a £899 fee, while Nationwide cut its five-year rate to 3.74% on Wednesday.
On Friday, the average five-year fixed mortgage interest rate sat at 5.40%, according to comparison site Moneyfacts.