First Direct life time tracker mortgage 65% LTV 1.29% plus base = 1.79% (no fee for existing customers, £950 for new although potential workaround - HotUKDeals
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Never need to fix again if you can get this rate, you must be an existing first direct mortgage customer to get this rate, take as lengthy 28-39 year mortgage to ensure your monthly payment is the lowest possible that way if rates rise you can still afford to make payments, a good tip is to make payment to cover a similiar property rentable value..

That way your capital will reduce as well as the Interest payable

Workaround sign upto the 1.69% plus BR = 2.19% tracker which is Fee Free £0
and switch as soon as mortgage goes through, hopefully you.ll have enough time to switch, still a good rate to be honest, if your on a standard variable ..

Unlimited over payments and interest calculated daily, so your reducing interest instantly on overpayments,
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whatyadoinsucka Avatar
1y, 10m agoFound 1 year, 10 months ago
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(2)
9 Likes
So much misinformation in the comments of this thread :)
5 Likes
The great thing about First Direct is that you can take an offer such as this 1.79% tracker and, for your overpayments, sign up to their 6% regular saver (4.8% after tax). You can put anything up to £300 per month into this. You'll earn more interest in the savings account than you pay on the equivalent funds in the mortgage.

At the end of each year, do a lump-sum overpayment of the (up to) £3,600 plus interest and open a new regular saver for the next year ;)

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#1
where does it say its is for life this rate?
3 Likes #2
the clue is in the title:

'Life' Tracker Repayment

It is a lifetime tracker ie tied to the base rate, not a lifetime fixed at the rate shown above

Edited By: nictry on Jan 21, 2015 18:09
1 Like #3
arma_gera
where does it say its is for life this rate?
It's a Life time tracker, ie tracks the base rate at 1.29% on top, ie base rate moves to 2% this will be 3.29%, but long term you.ll always beat a fix with a good tracker rate (no fees every time you need to fix again, and most fixes tend to be well above base rate

Edited By: whatyadoinsucka on Jan 21, 2015 18:28
#4
Where does it say no fee for existing customers? Can't you just sign up and take out the mortgage at the same time and hence avoid the fees?
#5
I just called them and apparently existing customers have to pay the 950 too.
#6
donslibi
Where does it say no fee for existing customers? Can't you just sign up and take out the mortgage at the same time and hence avoid the fees?

When you put in your details select the option "existing mortgage customer" it's no fee upfront
3 Likes #7
whatyadoinsucka
arma_gera
where does it say its is for life this rate?
It's a Life time tracker, ie tracks the base rate at 1.29% on top, ie base rate moves to 2% this will be 3.29%, but long term you.ll always beat a fix with a good tracker rate (no fees every time you need to fix again, and most fixes tend to be well above base rate

Saying a good tracker beats a fix isn't quite right, if you are on a fix at say the nationwide rate for new customers of 2.84% for 10 years as soon as rates rise to 1.6% then tracker becomes worse. Imagine the rates of the 90s or even the 80s and you could get stuck badly. This is a good deal, always worth seeing how the markets predict rates will go, current fixed rates and experts point to low rates for years to come but don't just sit on your laurels and say because you have a tracker ypu are alright. You need to keep an eye on the rates and though we have had low rates for a long time history show they can go up as well. Oh and I am on a FD tracker lifetime at 0.79% above with no early repayment and at time no fees. Fingers crossed for 7 more years of low rates and ours is gone but will keep an eye on the rates as the years go by. Since moving to that rate in 2008 quartered our interest payments :)
#8
Been with First Direct for 20 years now, never had a problem with them. Will be ringing them about this offer.
5 Likes #9
The great thing about First Direct is that you can take an offer such as this 1.79% tracker and, for your overpayments, sign up to their 6% regular saver (4.8% after tax). You can put anything up to £300 per month into this. You'll earn more interest in the savings account than you pay on the equivalent funds in the mortgage.

At the end of each year, do a lump-sum overpayment of the (up to) £3,600 plus interest and open a new regular saver for the next year ;)
#10
Why are there so few lifetime tracker rates. This is hot. But wish there was some choice.
2 Likes #11
eslick
whatyadoinsucka
arma_gera
where does it say its is for life this rate?
It's a Life time tracker, ie tracks the base rate at 1.29% on top, ie base rate moves to 2% this will be 3.29%, but long term you.ll always beat a fix with a good tracker rate (no fees every time you need to fix again, and most fixes tend to be well above base rate
Saying a good tracker beats a fix isn't quite right, if you are on a fix at say the nationwide rate for new customers of 2.84% for 10 years as soon as rates rise to 1.6% then tracker becomes worse. Imagine the rates of the 90s or even the 80s and you could get stuck badly. This is a good deal, always worth seeing how the markets predict rates will go, current fixed rates and experts point to low rates for years to come but don't just sit on your laurels and say because you have a tracker ypu are alright. You need to keep an eye on the rates and though we have had low rates for a long time history show they can go up as well. Oh and I am on a FD tracker lifetime at 0.79% above with no early repayment and at time no fees. Fingers crossed for 7 more years of low rates and ours is gone but will keep an eye on the rates as the years go by. Since moving to that rate in 2008 quartered our interest payments :)
Yes agreed, You may strike lucky with a fix and save long term, but that is the extremist scenario, in general people fix mortgages over and over again, to fix a mortgage is paying a premium to protect against rate rises, whilst not being able to reduce the capital significantly,
All fixes transfer onto a SVR after the term, again these tend to be 3-4% above base rate, hence paying 0.8-1.5% on a tracker your better off..
But youmust be financially astute and not bury your head in the sand

Ps. I don't think I.d fancy a 10 year fix that has big early redemption penalties, transferability may be a problem, plus if your missus leaves you for buying too much crap on hukd and demands half the house then

Edited By: whatyadoinsucka on Jan 21, 2015 19:41: Comments
1 Like #12
dugongs2
Why are there so few lifetime tracker rates. This is hot. But wish there was some choice.

What more choice do you need? This is a great rate. Over the past few years, HSBC and First Direct (part of the HSBC group) have been passing the baton between each other with regards to the best lifetime tracker rates. First Direct happens to have the best now.

A 1.29% margin is the lowest it's been in quite some time - and certainly the lowest it's been since the base rate dropped to 0.5%.
#13
Existing customers do not get a free arrangement fee for this product, it also depends on the LTV which is how much you owe over how much your property is worth, this deal will likely require 65-75%, as it has an arrangement fee there will also likely be a valuation fee too.
#14
shellpinkbaby
Existing customers do not get a free arrangement fee for this product, it also depends on the LTV which is how much you owe over how much your property is worth, this deal will likely require 65-75%, as it has an arrangement fee there will also likely be a valuation fee too.


have you read the title, the header clearly states 65% LTV, it also states for existing first direct customers, If you already have a FD mortgage why would they need a re-valuation, new customers would likely have valuation fees

Ps LTV of 65% is £65k debt on a £100k house, ie you.ve paid off £35k and your house is still the same value

Edited By: whatyadoinsucka on Jan 21, 2015 21:07
9 Likes #15
So much misinformation in the comments of this thread :)
#16
With the base so low, rates will only be going in one direction and that's guaranteed. Just a question of when. I remember when ppl used to say the base could go up, as well as down. Not any more, its only going up.
1 Like #17
anthony69
With the base so low, rates will only be going in one direction and that's guaranteed. Just a question of when. I remember when ppl used to say the base could go up, as well as down. Not any more, its only going up.
Yawn, I.ve been reading this since the month after it dropped to its historic low in 2009.. We all know it's gonna go up, but as I,ve said

take out as lengthy a tracker as possible ie 30 years, remember if you take out a 15 year mortgage your capital repayment element will be double the amount per month (give or take)
With unlimited overpayments on life time trackers, pay what you can afford to pay,
Reduce your capital, thus improving your future mortgage offers (improved LTV) and reduce the interest payable on capital.

It's win win until base rates start moving and your circumstances change so it may be the right time to fix, ie wife has a baby and only one income,
#18
marathonic
So much misinformation in the comments of this thread :)

It's amazing how many people cannot read the initial comments, this offer is available as stated.

I.m on a hsbc tracker, if I could switch to the 1.29% with zero fee I.d do so instantly, been checking for a blue cross sale, but like you say first direct seem to be forerunning at present.

a few years ago I borrowed £7k to push me through the threshold LTV, and get the lower rate, did the transfer, rang the mortgage number and they switched it over, no problem. Think I had to pay a £100 fee, but recouped that in 3 months, Never looked back to be honest .. Can't see me ever fixing now.

Edited By: whatyadoinsucka on Jan 21, 2015 22:05
#19
This is hot. Wish my erc wasn't so much or I would go for it. Any ideas what legal and survey etc costs would be involved. Also worried my house would be revalued and then I won't have a good LTV.
#20
Really interested in this but worried their value would be significantly below the Nationwide HPI and possibly market value meaning I won't make the 65% LTV cut.
Anyone have any re mortgage valuation experience with First Direct or even HSBC they can offer?
I'm reluctant to fork out for the standard valuation report and admin fees just in case!

Thanks in advance.

http://www1.firstdirect.com/content_static/pdf/valuation_fees_table.pdf

Standard Valuation
A brief inspection to determine the current market value and confirm that a property provides suitable security for mortgage
purposes. Only areas that are accessible or visible will be commented on, furniture and carpets cannot be moved. If there appears
to be a problem a specialist report may be recommended. Customers are strongly advised to obtain a more detailed report/survey
and should not rely solely on a Standard Valuation report before deciding whether to proceed.

3 Likes #21
Few points - the workaround potentially will work but no guarantee the rates or the existing customers offers will still be there. Existing customer = mortgage customer, excluding purchases and certain other scenarios.
It is a life time tracker, but bear in mind that the 2 year fixed in the same bracket is the same price. Your ability to cope with rises coupled with your opinion on when rates will increase will determine whether to fix or track.

Oh an don't worry about misinformation - first direct pay me to get this right.
#22
Comment
sherbolton
This is hot. Wish my erc wasn't so much or I would go for it. Any ideas what legal and survey etc costs would be involved. Also worried my house would be revalued and then I won't have a good LTV.



Survey will dependant on your ltv. Legal fees are not chargeable usually as dealt with as part of deal.
#23
The 2 year fixed is actually lower at 1.59.
#24
Stupid question but how do I work out my ltv?
#25
We're about to do our first remortgage after our 2 year fix is due to end in August (bought our first house in August 2013) and have done considerable renovation to our house in the meantime. Our house will be worth a fair bit more than we paid. I'm presuming we'd need to have it revalued. Would this be done by the lender? As if its at the top end of what we think it could be worth we would be inside 65% ltv and we'd like to get onto a better rate than the 3.89% we're currently on. Thanks
#26
Comment
h2yprboy
Few points - the workaround potentially will work but no guarantee the rates or the existing customers offers will still be there. Existing customer = mortgage customer, excluding purchases and certain other scenarios.
It is a life time tracker, but bear in mind that the 2 year fixed in the same bracket is the same price. Your ability to cope with rises coupled with your opinion on when rates will increase will determine whether to fix or track.

Oh an don't worry about misinformation - first direct pay me to get this right.


The 2 year fix in the same bracket is actually 0.2% cheaper. It is a product that I was also highly tempted with.
#27
Comment
marathonic
Comment
h2yprboy
Few points - the workaround potentially will work but no guarantee the rates or the existing customers offers will still be there. Existing customer = mortgage customer, excluding purchases and certain other scenarios.
It is a life time tracker, but bear in mind that the 2 year fixed in the same bracket is the same price. Your ability to cope with rises coupled with your opinion on when rates will increase will determine whether to fix or track.

Oh an don't worry about misinformation - first direct pay me to get this right.


The 2 year fix in the same bracket is actually 0.2% cheaper. It is a product that I was also highly tempted with.


Sorry, I see you pointed that out in a later post
#28
Comment
mikecrawford73
Stupid question but how do I work out my ltv?


Mortgage balanced divided by your property value x 100.
#29
Comment
Burnham1987
We're about to do our first remortgage after our 2 year fix is due to end in August (bought our first house in August 2013) and have done considerable renovation to our house in the meantime. Our house will be worth a fair bit more than we paid. I'm presuming we'd need to have it revalued. Would this be done by the lender? As if its at the top end of what we think it could be worth we would be inside 65% ltv and we'd like to get onto a better rate than the 3.89% we're currently on. Thanks


Short answer - it depends what it's valued at. This tracker deal (for non existing customers) would require you to pay the fee to revalue it. If you are existing it would be done for free.
#30
Tempting . I'm currently on nationwide 0.5% BR + 2% (2.5%) so free to change and make any over payments I like but planning to move house this year so will no doubt end up borrowing a bit more .Currently have a LTV of about 30% so most deals should be available to me any thoughts?
Thanks
#31
Thanks OP. I currently have an Offset mortgage with First Direct and am currently paying BR + 2.39% and have been overpaying every month since I took it out about 4 1/2 years ago due to the low rate and this has substantially reduced the outstanding capital. The best Offset one they have available at present is BR + 2.29% so may give them a call.

Thanks again OP.
3 Likes #32
This is a good deal but it isn't a deal for everyone. It certainly isn't "better than fixing" for many people in certain circumstances. I'm sure the OP posted in good faith but you should always seek independent advice or do your own research.

People have a short memory and I do wonder what half the population would do if the oil price shot up again, we had rampant inflation and the pound started falling. Interest rates would rise and the trackers wouldn't seem anywhere near as good as the long term fixed.

Fixing is always a calculated risk but so is going for a tracker. It should be based on personal circumstances and appetite for risk!

For the record I'm not an IFA but I am financially astute and I am on a First Direct Lifetime Tracker at 0.75% above base. Its done me very nicely and FD are a fantastic company.
#33
Comment
rollout
Thanks OP. I currently have an Offset mortgage with First Direct and am currently paying BR + 2.39% and have been overpaying every month since I took it out about 4 1/2 years ago due to the low rate and this has substantially reduced the outstanding capital. The best Offset one they have available at present is BR + 2.29% so may give them a call.

Thanks again OP.


You would get it fee free. Consider what benefit you actually get per month from having an offset. You would need to speak to a mortgage advisor because you are changing product so they will ensure you get the right product.
#34
Can anyone confirm the workaround will work for this?
1 Like #35
I'm currently on a lifetime tracker with HSBC.. Do I count as a first direct customer to get this fee free?
1 Like #36
Comment
nseaman
I'm currently on a lifetime tracker with HSBC.. Do I count as a first direct customer to get this fee free?


No, you're a HSBC customer, not a First Direct customer
#37
Any chance they would take part of my mortgage (16,500) and I could leave the bulk with my existing rate of 1% over base rate with Chelsea?
#38
jezzery
Can anyone confirm the workaround will work for this?


http://www.hotukdeals.com/deals/nationwide-10-year-fixed-rate-mortgage-2-94-2122480?p=24196110


you remortgage to their higher rate, fee-free lifetime tracker. When the remortgage is complete, switch directly to the 1.29% + Base rate mortgage which, for existing customers, is fee-free
#39
From FD website:

"Closure fee
This is an administration cost to cover the costs in closing a mortgage once it has been fully repaid. Where a customer wishes to transfer their rate to another property and the sale and purchase complete simultaneously, the closure fee will be waived."

Any ideas how much that would be?
1 Like #40
chrisxxx
Tempting . I'm currently on nationwide 0.5% BR + 2% (2.5%) so free to change and make any over payments I like but planning to move house this year so will no doubt end up borrowing a bit more .Currently have a LTV of about 30% so most deals should be available to me any thoughts?
Thanks

Yes, speak to an IFA - seriously. Absolutely no one should make any kind of financial decision based on advice from an essentially anonymous, public forum.

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