Lender cuts mortgage rates

Mortgage lender first direct has announced it is cutting rates on a two of its home loan deals.

The provider has lowered the arrangement fee and rate on its two-year fixed rate deal to £999 and 5.59 per cent respectively, while it has also reduced the rate on the low fee version of the same mortgage to 5.89 per cent.

At the end of the fixed term, both of the deals revert back to the company''s standard variable rate of six per cent.

Chris Pilling, the chief executive of first direct, 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."

Last week, first direct announced it was resuming mortgage sales to non-customers.

The provider originally stopped offering deals to new clients at the start of April after it received five times its normal number of applications.

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