First Direct reduced the mortgage rates it is offering by up to 0.17 percentage points on Tuesday, following a slew of rate cuts by major lenders last week.
The bank has cut rates across its range of two, three and five-year fixed repayment mortgages, for first-time buyers and home movers.
The reductions include a cut on a two-year fixed-rate deal for people with a 15% deposit, which is now priced at 4.99%, down from 5.16%.
Liam O’Hara, head of mortgages at First Direct said: “We’re pleased to be reducing our rates across our range of two, three and five-year fixed mortgages, across LTVs (loans to value) from 60% to 95%.
“We see the highest demand for those products and today’s changes will help people making their first steps on the ladder, or those moving into their next home.”
Economists have predicted that the Bank of England base rate will be reduced from the current 16-year high of 5.25% at the next vote on August 1 – and there have already been signs of lenders’ mortgage rates edging down.
Last week, Halifax, HSBC UK, Barclays, Santander, NatWest and Yorkshire…
