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Thursday 24th of July 2008
May 20, 2008

First Direct re-opens to new mortgage business


by Gill Montia
First Direct re-opens to new mortgage business

HSBC subsidiary, First Direct, has re-opened to new business after closing its doors to new customers on the 1st April because it could not keep up with demand for its mortgages.

At the time, the lender reported that business volumes had increased 500% and that it would be focusing on the needs of its existing customers until a backlog had been cleared.

Since taking this drastic step, First Direct says it has remained busy, with applications from existing borrowers running at twice their normal level.

Mortgages now on offer include: a two-year fixed-rate at 5.76% (£499 booking fee and £1,499 arrangement fee); two-year fixed-rate at 5.99% (£99 booking fee and £399 arrangement fee); five-year fixed-rate at 5.98% (£299 booking fee and £299 arrangement fee); 10-year fixed-rate at 5.99% (£299 booking fee and £299 arrangement fee).

The maximum loan-to-value ratio is 80% on all products and rates automatically revert to First Direct’s standard variable rate (currently 6%) at the end of the fixed term.

Maximum sum available on all the above loans is £400,000.

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Story link: First Direct re-opens to new mortgage business


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