Lower first direct mortgages fee 'leads to emphatic response'

Date:Wednesday 7th July 2010
Author: Susanna Kavka

There has been a significant increase in the number of enquiries for first direct mortgages since the firm announced a fixed £99 fee for all its home finance products.

Richard Tolchard, senior product manager at the financial services provider, suggested that the emphatic response of customers suggests that they like the clarity achieved as a result of the change.

According to first direct mortgages, it experienced its busiest weekend of the year after bringing in the flat fee structure as part of its summer sale.

Mr Tolchard remarked that he is very happy with the scale of the response by homeowners calling in to enquire about applying for a new home finance deal.

"It's a challenge for consumers looking at all the hundreds of mortgages available and we know we offer some of the cheapest mortgages in the market," he added.

The flat fee arrangement was brought in at the beginning of this month (July) and Mr Tolchard said at the time that the policy could make it easier to switch their mortgage.