First Direct Clears Mortgage Backlog

First Direct withdrew from the market six weeks ago as it struggled to cope with soaring demand for its mortgages.

However, this Monday, the mortgage lender returned to the market, resuming offering a wide range of mortgages to its customers.

First direct was forced to withdraw from the market on April 1st when it suspended its offers to people without existing accounts at the bank.

However, it has now cleared a backlog of mortgage application approvals and is returning to the market.

It said at that time demand had surged after rivals raised their mortgage rates or withdrew offers due to the credit crunch.

Its 2-year fixed rate of 4.95 percent had been one of the best on offer to homeowners which consequently caused a stampede on the bank which it could not cope with.

The bank usually takes a small portion of the mortgage market and struggled to cope as it received a years worth of mortgage applications in three months.

First Directs usual 3.6 per cent share of the mortgage market has increased substantially due to the competitive offer, which requires a 20% deposit.

Carys is an author of several articles pertaining to Mortgages. He is known for his expertise on the subject and on other Business and Finance related articles.