First Direct cuts mortgage rates AGAIN!

farhad1965

Just noted today that FD have cut their rate for the 2 year fixed mortgage from 5.59% to 5.49% with arrangment fee of £999 and a booking fee of £499 and for maximum loan size of £400k.

Even better than this, they have a 5.25% 2 year fixed with total fees of £798 for selected customers only. See message I received earlier this week:

It's hard to miss the fact that competitive mortgage deals are not as prevalent as they have been. Great deals are few and far between. So when it comes up, it's worth taking notice. We'd like to tell you about a great fixed rate offset Mortgage deal. This mortgage rate isn't being advertised. In fact we're only contacting a select number of our existing customers. To qualify you need to have an agreement in principle by 20 July 2008.
With an offset Mortgage you can link your first direct 1st Account as well as your Everyday Savings Account and your Savings Account balances to your mortgage, so you only pay interest on the difference.
Even if you currently have a fixed rate mortgage with another lender and that rate expires within the next six months, we can still complete an agreement in principle with you and hold the rate until your current fixed rate ends.
In black and white, we are offering << 5.25% >> fixed for 2 years, reverting to our standard variable rate for the remaining term, currently << 6.00% >>. The overall cost for comparison is << 6.1% APR >>. The offset Mortgage has an arrangement fee of 399 pounds and a fixed rate booking fee of 399 pounds. If rates go down during the fixed rate period you could pay more on your mortgage than you would on a variable rate mortgage. This rate is only available until 20 July 2008. Other fixed rates may be available.
And if you close your fixed rate offset Mortgage during the fixed rate period early repayment charges will apply.