First Direct has cut its 90% LTV fixed rate mortgages by up to 30 basis points.

New rates include:

• 90% LTV 3.99% three-year fixed rate with a £999 booking fee
• 90% LTV 4.29% fee free three-year fixed rate
• 90% LTV 4.19% five-year fixed rate with £1,499 booking fee
• 90% LTV 4.49% fee free five-year fixed rate

Fee free means no arrangement fee, booking fee or

• standard valuation fee.

The lender will cover the cost of one standard valuation where this is required as part of the mortgage application.  Additionally, where it is a straight forward transfer from another lender, First Direct also pays the standard legal costs.

Andy Forbes, head of retail products at First Direct, said: “In response to increased demand for high LTV mortgages we have reduced our 90% LTV rates by up to 30 basis points to ensure our customers have access to our most competitive rates.

“Also, to drive down the up-front cost of purchasing a property, first direct currently offers a fee free option on all its 90% LTV mortgages, helping buyers avoid arrangement, booking and valuation fees.”

For borrowers with a larger deposit, the direct bank has made further rate reductions across the rest of its mortgage range including:

• 65% LTV 2.39% three-year fixed rate with £1,499 fee
• 65% & 75% LTV standard & fee free two and three-year fixed rate repayment mortgages reduced by 10bps
• 65% LTV standard & fee free term tracker repayment mortgages reduced by 10bps
• All two-year fixed rate offset mortgages reduced by 10bps