Fee free mortgage 2.39% + base rate = 2.89% @ First Direct - HotUKDeals
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They have just reduced their rates from yesterday.

2.39% + base rate (0.5%) = 2.89% for up to 65% LTV
3.09% + base rate (0.5%) = 3.59% for up to 75% LTV

No fees or charges (see below for small print).

"As part of the Fee Free pricing package we will cover the cost of one standard valuation. You will need to cover your own legal costs, including Land Registry and other directly related completion fees. In all cases, you will be responsible for paying any other fees or charges, for example any early repayment charges, closure fees or deeds release fees charged by your previous lender"
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6y, 9m agoFound 6 years, 9 months ago
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#1
Worth a look if you have a big deposit or lots of equity in your current home. First Direct have excellent customer service.

However, note the only way for interest rates to go is UP which economists are predicting for later this year so don't ignore fixed rate deals.
#2
Could be rather expensive when the base rate goes back up to around 5%, you'd be paying 7.39%!
#3
How long is this deal for ? I am currently on a 4.99% deal which will cost me only 1% to come out of it. So a saving of 1.1% is still good for me.

Also I believe this is an offset mortgate so even better.
#4
Good one. FD are highly rated and do have excellent customer service. I'll be checking this one out.
#5
We currently are on a 10yr fixed rate at 6.09% with 8.5 yrs left and seeing all the low rates I was tempted but since they will go up I dont suppose we are on such a bad deal especially since not that many fixed rates are as long as 10 year now.
#6
I jsut rang them and if you are doing a remortgage you don''t have to pay fees. Apart from the ones of coming out of your current deal.

Also £149 fee if you decide to go to another lender at any point so not bad at all.
#7
As part of the Fee Free pricing package we will cover the cost of one standard valuation. You will need to cover your own legal costs, including Land Registry and other directly related completion fees. In all cases, you will be responsible for paying any other fees or charges, for example any early repayment charges, closure fees or deeds release fees charged by your previous lender.
#8
Barclays also have some good deals, some with application fees, some without.
eg
Tracker BR + 1.48
BR+2.13
BR+2.39
BR+2.49

Sometimes it might be worth paying the fees, depending on how much you want to borrow and the differing rates.
I am looking to borrow more money so might stick with barclays.

Managed to 'catch' one of the last good trackers - currently paying and have been paying 1.24% (BR+0.74) for the past year or so.

Good luck - it is a minefield out there!
#9
I'm currently in the process of hopefully getting this deal with First Direct, after Skipton gave me the terrible news regarding their increase of SVR!
#10
Whilst I understand that variable may not suit everyones needs, this is a fantastic deal. Believe me I've considered many different mortgages recently. What makes this particular mortgage appealing is the fact that there are absolutely no fees to pay:

- No setup fee.
- No valuation fee.
- No fee when you want to be released from this mortgage.

I'm just going through the application process for this exact product myself, however at the slightly higher rate of 2.99% (which is what it was at the time). Just phoned up and they've applied the new 2.89% rate for me with no problem at all.

Almost all mortgages have fees attached ranging from a few hundred pounds to well over a thousand or even thousands.

In my opinion many of the fixed mortgages on offer are quite expensive at the moment even for the 2 year fixes. The best of these will have particularly high fees attached also. As soon as interest rates go high enough to make the variable uncompetative, then I will try and find a good fixed rate. Although finding the right time to do this may be a bit tricky. Absolutely no exit fees when I do decide to move though and I can do this anytime whether it's 2 months, 2 years or 20 years.

The fixed rates on offer at the moment are barely any better than when I took out my last mortgage when the base rate was 4.5%.
#11
asandino
How long is this deal for ? I am currently on a 4.99% deal which will cost me only 1% to come out of it. So a saving of 1.1% is still good for me.

Also I believe this is an offset mortgate so even better.


This is a life time tracker. So deal is until your mortgage ends.
#12
This is okay for the short term, but we all now the only way for interest rates are up, only a matter of time.
#13
Padgio

....
I'm just going through the application process for this exact product myself, however at the slightly higher rate of 2.99% (which is what it was at the time). Just phoned up and they've applied the new 2.89% rate for me with no problem at all.
.....


I was in the same situation. I originally applied around 1 Jan at 2.99% then I saw the rates had come down. I was able to get the new rate without any issues.
#14
Worth looking at Barclays
First direct offered 2.74+BBR for 75% LTV but Woolich offered 2.39+BBR both of the mortgage had 999 arrangement fees
If you have 25% deposit its worth looking at Barclays, ING Direct which offer 2.39+BBR
If you are barrowing 175K then 0.1%=20£ in intrest so if the rate is more by a percent you end up paying nearly 200£ extra on the intrest
Hope this helps
http://www.fsa.gov.uk/tables
banned#15
Why is everyone for FirstDirect, you forgetting when they alienated thousands of customers by charging them for having a current account with them if you earned less than £1,500 I left because of it.

http://www.guardian.co.uk/money/2006/nov/18/currentaccounts.saving
#16
lumoruk
Why is everyone for FirstDirect, you forgetting when they alienated thousands of customers by charging them for having a current account with them if you earned less than £1,500 I left because of it.

http://www.guardian.co.uk/money/2006/nov/18/currentaccounts.saving


Not everyone...But as most people earn more than £1,500 they probably don't really care about the charge.
1 Like #17
quote from link

The easiest way to avoid the fee would be to open a First Direct savings account and stick a pound or two in it, according to price comparison website Moneysupermarket.com. It seems such an obvious loophole that it will be interesting to see if the bank acts to prevent people doing this. But First Direct told Money that people would be able to do this and avoid the fee.
#18
Great deal if you have a good deposit! Great post OP. Heat added.
#19
westbrom
This is okay for the short term, but we all now the only way for interest rates are up, only a matter of time.


Benjimoron
Could be rather expensive when the base rate goes back up to around 5%, you'd be paying 7.39%!


And? Take this deal now and then when the interest rate goes up to a point where you don't think its viable then you look for something better and you are potentially saving in the meantime.

Rob
#20
smk77
Not everyone...But as most people earn more than £1,500 they probably don't really care about the charge.

Agree. And, it's a only a small charge...not worth closing your account over, especially given that FD are one of the better banks in terms of customer service.
#21
Is this like the One Account where it only charges you interest on your current balance?
#22
Thanks! Been offsetting with FD for last few years and has really helped reduce payments.
My current fixed deal is due to end with them in April, just called them and now applied for this.
Service from them is always first class.
#23
welshblob
And? Take this deal now and then when the interest rate goes up to a point where you don't think its viable then you look for something better and you are potentially saving in the meantime.

Rob


This does not make any sense at all. If the base rate goes up a lot (e.g. more than 2% say) you're screwed on whatever variable / tracker mortgage you're on so and there won't be anything "more viable" out there to switch too. The fixed rates would have all gone up as well so you'd be pretty stuck.

You need to take a view i.e. you can either enjoy the low tracker rate now but be at the mercy of any rate hikes OR fix long term for peace of mind but pay a bit more now for the privilege.

It all depends on yur circumstances and how you think rates will go. Personally, I think the only way for rates to go is up but it's not going to happen in a big way anytime soon.
banned#24
Meerkat2006
Agree. And, it's a only a small charge...not worth closing your account over, especially given that FD are one of the better banks in terms of customer service.


Lets see first direct take £10, Halifax give £5 you're coming to the wrong site my friend :roll:
#25
I think most people on existing mortgages will be at a base rate of 2.5%. The trouble is most sites now once you take out a deal put you on a Standard variable rate of 3.99% when the deal ends.

In terms of this deal I would be paying more than 2.5% anyway so i wouldnt switch.

Its worth pointing out anyone on a shared ownership scheme couldnt take out a offset mortgage anyway. For me I will sit out the mortgage and pay it off as soon as I can in 20 or so years.

I also despise having to take out a current account and paying for it.
#26
lumoruk
Lets see first direct take £10, Halifax give £5 you're coming to the wrong site my friend :roll:


If you have your mortgage with fd then you do not pay the current a/c fee.

The level of customer service offered by fd is far better than any other bank.
93% of customers either satified or extremely satyisfied.
#27
I rang them yesterday and they offered me an offset mortgage rate of 1.89 + BR (0.5), making a nice total of 2.39% for a 65% LTV. There is a £999 arrangement fee and a £360 valuation fee, but these fees are more than covered within the 1st year of repayments
#28
rates wont go up later this year...and if they do...why pay a higher rate now when i can pay the same as fixed rate in halfyear/a year's time...that's if they go up...i don't think they will buying power has hit the ground now i think...if anyone noticed they did good variable rates up to a few months ago october/november time where now they kept the same fixed rates as then but increased the variables to somehow match the fixed rates...i think they are running away from variables to get people to buy the fixed ones as it won't go up significantly in the next year...my point again why pay a higher rate now when i can pay it later? most deal are 2-3 years anyway...it will add up somehow lower rate now higher in the future with the variable...but bear in mind lower rate at the beginning of the mortgage is better than lower later on after you've paid some off...
#29
lumoruk
Lets see first direct take £10, Halifax give £5 you're coming to the wrong site my friend :roll:


Ah, so we should all move our accounts to halifax?? The bank that now charges £1 a day for being overdrawn even if it's just by 1p when they used to charge 19.5% annually (and what's that as a daily rate?).
#30
smk77
Ah, so we should all move our accounts to halifax?? The bank that now charges £1 a day for being overdrawn even if it's just by 1p when they used to charge 19.5% annually (and what's that as a daily rate?).


Who goes overdrawn? Poor people.

This is a good deal with First Direct, there are no ERCs when you take it up so the fee free option is decent. I expect you will get 12 months out of it before fixed rates become more attractive. However you would probably have missed the boat on low fixed rates. In the big picture you will probably save more by going tracker then fixed but can you be bothered to do this?

Interesting to see the gushing praise of FD customer service though. Their mortgage service is not well equipped for large numbers of applications. The staff are always helpful but pretty stupid. Premier banking at Lloyds is far superior.

It should also be said that First Direct are fairly tight on income multiples as well and their repayment methods may not suit everyone.
#31
Can anyone recommend a mortgage for a first timer buyer here? Will hopefully have a 12k deposit with a max purchase price of around 90k.

Would appreciate any advice on the matter :)
#32
anubisrich
Who goes overdrawn? Poor people.


You missed the point of my post...

As for who goes overdrawn - don't be such an idiot.
#33
1Jim0
Can anyone recommend a mortgage for a first timer buyer here? Will hopefully have a 12k deposit with a max purchase price of around 90k.

Would appreciate any advice on the matter :)


I'll give you some advice...never take financial advice from anyone on the internet. Go and see a financial advisor if you need to ask this question.
#34
Not a bad deal, plus First Direct customer service is the best. I've been a customer of theirs for many years, and everytime I ring the phone is picked up right after the first ring and its a UK based call center.
#35
lumoruk
Why is everyone for FirstDirect, you forgetting when they alienated thousands of customers by charging them for having a current account with them if you earned less than £1,500 I left because of it.

http://www.guardian.co.uk/money/2006/nov/18/currentaccounts.saving


I have an account with 1st Direct but don't put my salary in it. I've never paid a penny in fees 'cos it doesn't apply if you have another product so I keep £1 in an Everyday Saver account.

I was thinking about this deal but I'm still kicking myself for not signing up in Oct 2008 when they offered me base rate plus 0.49% for life with no fees! At the time it was £5/month more than my 2 year discount at Britannia which has of course expired. I could be paying 0.99% right now - how dumb was I?
banned#36
why not consider ING..direct

http://www.ingdirect.co.uk/mortgages/fixed_rate/fixed_rate_buying_home.asp

Fixes 3.54 2 yr 75 % LTV Low Fees
Tracker 2.64 2yr 75 % LTV
#37
smk77
You missed the point of my post...

As for who goes overdrawn - don't be such an idiot.


smk77
I'll give you some advice...never take financial advice from anyone on the internet. Go and see a financial advisor if you need to ask this question.


+1! :thumbsup:
banned#38
boonkoh
Not a bad deal, plus First Direct customer service is the best. I've been a customer of theirs for many years, and everytime I ring the phone is picked up right after the first ring and its a UK based call center.


you sure it's not American?
centre!
1 Like #39
1Jim0;7734620
Can anyone recommend a mortgage for a first timer buyer here? Will hopefully have a 12k deposit with a max purchase price of around 90k.
Would appreciate any advice on the matter :)

Have a look at the FSA site http://www.fsa.gov.uk/tables/index.jsp on mortgages, doesn't give advice but does lead you through and provides tables of every deal out there.
I would echo the customer satisfaction with FD, been with them almost since they started up and they've been excellent.
#40
First Direct are amazing and I like their off set deals. I am really concerned about all these people not realising how low 0.5% is and with inlation looming its head this will start creaping up 0.25% from the early summer. I predict it will creep up to between 2.5 and 3.5% by the end of 2011. I would either go with one of these deals for no more than 2 years or fix for as long as you can - it will be about 5% but you will be laughing in long term. 0.5% is unprecidented and will not be around for much longer - I got a tracker for two years at 0.05% above the base rate but I accept that now is the time to fix so I did. Be careful with these deals as they may bite you on the ****.

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