Mortgage fees at first direct have been cut to £99 on all of its products, in a bid to improve competition in the mortgage market.

First direct has reduced the fees on all of its mortgages to a competitive £99 in the hope that this will simplify the mortgage options available to borrowers, by having just one fee.

Borrowers will pay £99 for either the booking fee or arrangement fee, while the other will be free.

First direct also announced that it has cut the interest rates on some of its mortgages, including the Offset Base Rate Tracker Mortgage now at 2.29 per cent on mortgage up to 75 per cent loan to value; a two year fixed rate mortgage with an LTV of 65 per cent now costing 2.99 per cent; a five year fix for 65 per cent LTV at 4.19 per cent, and a two year fixed rate offering 3.49 per cent up to 75 per cent loan to value.

Commenting on the new rates and lower fee, Richard Tolchard, senior mortgage product manager at first direct, commented: “We sometimes feel like David in a market full of Goliaths. Our Summer Sale mortgage offers are designed to take the value for money challenge to the big boys.

“We understand money is getting tighter for many homeowners and our newly improved range with its nominal £99 product fee makes it easier for customers to switch to make their money go further.”

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