First direct has launched a new five-year fixed rate mortgage at 2.99%.

Borrowers with a 35% deposit or equity will be able to take advantage of this rate fixed for 5 years.

The rate has a £1,999 booking fee.

First direct will also be cutting all 65% LTV standard and fee free fixed rates by 0.30 percentage points.

In addition, the direct bank today launches a range of new rates including:

• 65% LTV 2.89% two-year fixed rate with a £999 fee
• 65% LTV 2.99% three-year fixed rate with a £1,499 fee
• 65% LTV 2.99% five-year fixed rate with a £1,999 fee
• 65% LTV 3.29% five-year fixed rate with a £999 fee
• 90% LTV 4.79% five-year fixed rate with £499 fee

Ian Bartholomew, senior mortgage product manager at first direct, said: “Over the last month we have seen borrower appetites increase for longer-term fixed rate mortgage deals which is likely to be the result of some lenders increasing their standard variable rates.

“In response to this demand we have reviewed our offers to ensure that our customers continue to have access to competitive rates.”