First Direct has launched a new 1.68% three-year fixed rate repayment mortgage.

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

Borrowers can also make unlimited overpayments or lump sum payments throughout their fixed rate period without any penalties. Where the mortgage is repaid in full an early repayment charge is payable of 3% in the year the rate was fixed, and 2% for the remainder of the fixed rate term.

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