First Direct unveils three-year fix at 1.68%

Lender First Direct is launching a market leading three-year fixed rate charging 1.68% from today.

The mortgage has a £1,450 fee and is available to borrowers with a 35% deposit or equity.

Borrowers also have the flexibility to make unlimited overpayments or lump sum payments throughout their fixed rate period without any penalties.  

Andrew Forbes, head of products at First Direct, said: “With the election looming customer demand for fixed rates remains strong.  

“We know borrowers are looking for competitive rates that also give them an element of flexibility, and our new market-leading three-year fixed rate does just that.”

Rachel Springall, finance expert at Moneyfacts said: “First Direct’s 1.68% deal will appeal to borrowers looking not only for a decent rate but the opportunity to overpay their mortgage without the usual limitations elsewhere.”

For borrowers looking for a competitive rate with no fee, First Direct continues to offer its Fee Saver2 mortgage range, which has been expanded to include a wider range of rates and LTVs.