Arrangement fees cut to just £99 by First Direct

Internet banking giant First Direct has slashed its mortgage arrangement fees to just £99 according to recent reports. This will come as great news for the many people that are looking to take out a mortgage but want to try and reduce the cost of the mortgage wherever possible.

Arrangement fees on mortgages can be very high in some cases, and this is why it is vital for those looking to take out a mortgage to ensure that they check the arrangement fees as well as other costs before making any commitment. The reduced arrangement fee from First Direct, which is part of the High Street banking giant HSBC, complements some of the most competitive mortgage rates on the market.

The reduction in the mortgage arrangement fee forms part of a summer promotion from First Direct, and officials have advised those that have already applied for a mortgage with the lender but have not paid the arrangement fee yet to contact First Direct and see whether the charges can be reduced.   

Previously some of the arrangement fees that were charged by First Direct were as high as £999 so the promotion means that some people could save a massive £900 on the cost of the arrangement fee. The lender offers a range of competitive mortgage deals, and offers offset mortgages which have become quite popular.

Financial website This is Money stated: “This is a great offer from First Direct. Usually we’re very sceptical about any form of mortgage sale, but this is an instance were a special deal is actually offering the golden combination of good rates and low fees. We like First Direct’s lifetime trackers and offset deals, which have no early repayment charges and its fixed rates are highly competitive.”