first direct launches 10-year fixed mortgage | moneyfacts.co.uk

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Michael Brown

Content Writer
Published: 08/07/2022

The newly launched range makes an appearance on our best buy chart.

In response to growing demand, first direct launched its range of 10 year fixed mortgage products today.

“After a string of base rate hikes in 2022, the launch of this product is to give homeowners and buyers long-term peace of mind while external volatility – such as soaring house prices and rising utility bills – shows no signs of abating,” said Chris Pitt, CEO of first direct.

The digital provider, which is a division of high-street bank HSBC, can finance up to 80% of your property with its newly launched range. In the table below we have highlighted how each rate and product fees will vary depending on your loan-to-value (LTV) ratio.

first direct’s 10 year mortgage range

Loan-to-value ratio

Rate

Product fee

60%

3.34%

£490 product fee

60%

3.49%

No product fee

75%

3.49%

£490 product fee

75%

3.59%

No product fee

80%

3.59%

£490 product fee

80%

3.69%

No product fee

first direct’s lowest rate for a 10 year fixed term is 3.34%. Source: first direct.

Whatever 10 year option is chosen, mortgage borrowers will be allowed to make use of unlimited overpayments and a free valuation. Remortgage customers, meanwhile, can also make use of free legal fees.

Those who wish to investigate these options can contact first direct online or over the telephone but not through mortgage brokers.

What other ten year options are on the market?

This type of mortgage is not uncommon. Other high street lenders, such as Barclays Mortgages and Lloyds Bank, already have some form of 10 year fixed mortgage on offer.

However, first direct’s offer at a 60% LTV, rate of 3.34%, and product fee of £490 has made its way onto our best buy table. These positions are determined according to several factors, which include rate, product fee and incentives among others.

The other 10 year fixed offer to appear on our best buy chart is from Halifax. This offer is available at a higher 75% LTV, rate of 3.38%, and a product fee of £995, and provides its borrowers with £250 cashback.

Both rates on these products are well below the average 10 year fixed rate on the market, which currently stands at 3.97%.

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