The deal has a £1,399 fee and is available up to 65 per cent loan-to-value. It is available as either a repayment or offset loan.
The lender also today launches a 2.49 per cent three-year fixed rate, also available up to 65 per cent LTV, with a £1,499 fee.
It has also launched a 2.38 per cent tracker mortgage with a £1,699 fee.
First direct head of retail products Andy Forbes says: “Over the last month we have seen competition increase in the mortgage market. In particular our five year fixed rates have been extremely popular. In response to this demand we have lowered the rates on many of our five year fixed rates, to ensure our customers have access to our most competitive rates.”