First Direct has launched the lowest ever five-year fixed rate at 2.69 per cent, while Chelsea Building Society has launched the market’s lowest two-year fixed rate at 1.89 per cent.
Direct-only lender First Direct is charging a £1,999 booking fee for the product, which is available to those with a 35 per cent deposit.
First Direct head of retail products Andy Forbes says: “Over the last month we have seen borrower appetites increase for longer term fixed rate mortgage deals. In response to this demand we have reviewed our offers to ensure that we continue to give our customers access to the most competitive rates available.”
Chelsea Building Society’s 1.89 per cent fixed rate is direct-only and available to borrowers with a 40 per cent deposit and has a £1,695 fee.
ING Direct has launched the market’s lowest two-year tracker mortgage at 1.94 per cent, which is available up to 60 per cent LTV. It comes with a £1,750 product fee and a £195 booking fee.
London & Country associate director of communications David Hollingworth says: “When lenders want business they will look to drive headline rates down and they will get headlines for it, but with the fees involved I would not say these are the best deals for many people.”