First Direct has launched a range of three-year fixed-rate mortgages, while cutting rates across existing two- and five-year fixes by up to 30 basis points.  

The lender says its new range starts at 5.79% for the three-year fixed standard at 60% loan to value. It is available to both new and existing customers, at up to 90% LTV.   

The firm says the move is a response to “demand for this product” as borrowers search for options amid high interest rates.  

Many of the homebuying market’s core two- and five-year deals were signed at sub-2% mortgage rates some two years ago, but the average rates on both of these terms now are well above 6%.  

The average two-year fixed residential mortgage rate is down 2bps at 6.67% today, from yesterday, according to Moneyfacts.  

The average five-year fixed residential mortgage rate is down a single basis point at 6.17% today, from the day before.  

First Direct chief executive Chris Pitt says: “In the current market, many of our customers are telling us they don’t want to fix for five-years but want fixed-rate options that exceed two years.   

“We have acted on the feedback we’ve received by launching this range of three-year fixed rates and offering more choice and flexibility to our customers.”  

The lender adds that reductions among its core two- and five-year home loans, mean that its five-year fixed-rate range now starts at 5.24% on a 60% loan-to-value fixed standard product.   

Its cheapest two-year product is the two-year fixed standard loan at 60% LTV, at 5.89%.     

Other highlights among its rate reductions include:  

Repayment range – new customers  

• Two-year fixed fee saver offers at 60%, 75%, 80% and 85% LTV, fall by up to 15bps  
• Two-year fixed standard loans at 60% and 75% LTV, fall by up to 10bps  
• Five-year fixed fee saver deals at 60%, 75%, 80%, 85% and 90% LTV, fall by up to 30bps  
• Five-year fixed standard products at 60%, 75%, 80%, 85% and 90% LTV, fall by up to 20bps  

Repayment range – existing customers  

• Two-year fixed fee saver deals at 60% and 75% LTV, fall by up to 5bps  
• Two-year fixed standard offers at 60% and 75% LTV, fall by up to 10bps  
• Five-year fixed fee saver loans at 60%, 75% and 80% LTV, fall by up to 5bps  
• Five-year fixed standard products at 60%, 75% and 80% LTV, fall by up to 10bps