First Direct has launched a new mortgage offering the cheapest rate on the market for those who are not buying a new home.
It is available to those with large deposits or equity in their home – worth a minimum of 40 per cent of their property value – and comes with a £490 fee.Liam O’Hara, head of mortgages at First Direct, said: “We’re starting to see more activity in the remortgage market, with more customers shopping around for the best deal, so it’s great to be able to make our most competitive price available to those customers.
However, even with recent falls, mortgage rates are still far higher than the rates most people coming remortgage are currently on. But the cuts are still generally good news, as they will mean households are paying less than they otherwise would have.Anthony Codling, managing director at RBC Capital Markets, said: “We expect mortgage rates to fall further in the coming months and with wages continuing to rise the outlook for the UK housing market remains on the up and with housing so high on the political agenda it would be a shock if the budget stopped the recovery in its tracks.