First Direct customers are facing a month wait for mortgage interviews after demand soared when it slashed application fees to £99 at the start of July.
Call volumes have leapt 40%, when the rate dropped from £999 to £99, with the bank’s lifetime tracker mortgage drawing the most applications.
The lifetime tracker repayment loan is set at 1.79% above base rate until the entire loan is paid off for those on a 65% LTV. The product also offers 2.29% above base rate for those on a 75% LTV, or 3.49% above base for those on a 85% LTV.
First Direct is urging customers not to panic and is sending letters reassuring them if they qualify they will get the interest rate they want.
It is recruiting more staff to deal with the deluge of applications and has already moved staff across from their parent group HSBC to process the applications.
