New Range of First Direct fee-free Mortgages: 5yr fix @ 1.94%, 10 yr fix @ 2.49% - HotUKDeals
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New Range of First Direct fee-free Mortgages: 5yr fix @ 1.94%, 10 yr fix @ 2.49%

£0.00 @ First Direct
The headline deals are for 60% LTV but there's a good value 10 year fix available at 75% LTV for 2.64%. However, I'll just talk about the headline deals in this post. The deal linked to below was a… Read More
marathonic Avatar
3m, 1w agoFound 3 months, 1 week ago
The headline deals are for 60% LTV but there's a good value 10 year fix available at 75% LTV for 2.64%. However, I'll just talk about the headline deals in this post.

The deal linked to below was a good deal from HSBC which, unfortunately, was pulled last December. It was available at 65% LTV.

However, assuming that you meet the 60% LTV requirement, this deal is much better for one main reason - early repayment charges. The first list below is the First Direct ERC for years 1 through 10 and the second list is for HSBC for years 1 through 10.

3/2/2/2/2/2/2/2/2/2%
5/5/5/5/5/5/4/3/2/1%

Ten years is a long commitment and people can need out of a mortgage deal for many reasons such as divorce or remortgaging to release equity for college tuition, medical expenses or entry to retirement homes. With the First Direct product, unless you encounter issues in year 1, the ERC will be just 2% - which most will be able to handle.

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marathonic Avatar
3m, 1w agoFound 3 months, 1 week ago
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#1
I need a £120 k mortgage and I own my house which is valued at £270 k ..I need the security of a long fixed mortgage and do you think I would qualify and would this be suitable for me
1 Like #2
cadmus
I need a £120 k mortgage and I own my house which is valued at £270 k ..I need the security of a long fixed mortgage and do you think I would qualify and would this be suitable for me
You certainly qualify on LTV but you'll also need to meet their lending criteria: credit score, disposable income etc. Give them a call.
2 Likes #3
There is no way the OP can answer that, it would depend on your individual circumstances, eg income and expenditure, whether the lender would see it as affordable for you. Etc.
#4
Master.G
cadmus
I need a £120 k mortgage and I own my house which is valued at £270 k ..I need the security of a long fixed mortgage and do you think I would qualify and would this be suitable for me
You certainly qualify on LTV but you'll also need to meet their lending criteria: credit score, disposable income etc. Give them a call.
Thankyou (_;)

Edited By: cadmus on Feb 16, 2017 10:47
#5
Heat added.
#6
Do you need to hold an account with them? I see barclays has same rate on moneysupermarket but its only available to premier account holders. I have a 10yr fix set up with current lender barclays at 2.58% due to start april 1st. Want to keep payments consistent and not worry about base rates.
#7
These rates are starting to rise, I fixed with First Direct at the end of January for 1.84% 5 years - and then the rate dropped just after to 1.79% as posted in this deal from three weeks ago.



Edited By: scottishpunter on Feb 16, 2017 12:49: auto correct
4 Likes #8
scottishpunter
These rates are starting to rise, I fixed with First Direct at the end of January for 1.84% 5 years - and then the rate dropped just after to 1.79% as posted in this deal from three weeks ago.

They are not rising. The deals you're quoting are the rates with arrangement fees. I've been tracking First Direct rates for ages and this is the cheapest fee-free 5-year fix ever.

The previous best First Direct 5-year fee-free fix was 2.08% - that was pulled in January and the rate was 2.19% since (until today's drop to 1.94%).

The HSBC deal you link to has comments about a 1.96% 5-year fee-free fix. This deal is 0.02% lower and has lower early repayment charges.


Edited By: marathonic on Feb 16, 2017 13:13
1 Like #9
marathonic
scottishpunter
These rates are starting to rise, I fixed with First Direct at the end of January for 1.84% 5 years - and then the rate dropped just after to 1.79% as posted in this deal from three weeks ago.
They are not rising. The deals you're quoting are the rates with arrangement fees. I've been tracking First Direct rates for ages and this is the cheapest fee-free 5-year fix ever.
The previous best First Direct 5-year fee-free fix was 2.08% - that was pulled in January and the rate was 2.19% since (until today's drop to 1.94%).
The HSBC deal you link to has comments about a 1.96% 5-year fee-free fix. This deal is 0.02% lower and has lower early repayment charges.

Apologies, you are correct I had 2 spreadsheets one with fees one without and I looked up the wrong one.
#10
Damn, I got the 2.08%in Nov and never thought it'd drop X)
#11
deal
#12
great deal.Just applied.let's see how it goes...
#13
This looks a cracking deal, feel a remortgage coming up.
#14
Gutted! on the brink of completion for remortgage.. dropped to 0.05% I wonder if they can still adjust the rate I haven't sign paper works from the solicitors
#15
Excellent deal, I thought I had a good on 10years @ 2.59%, since I got that mortgage rates for 10 year fixes have risen, due to increases in swap rates etc. With inflation on the up and the US likely to up it's rates, it's a good time to take a long term low fix, things could get pretty interesting once we leave the EU!
1 Like #16
One thing to be aware is that the ERC is a bit different from many others. It only comes in if you repay IN FULL before the end of the mortgage term, and is based on a % of the full original mortgage at the start of the term.
This also means you can do lump sum repayments as big as you want (as long as you don't completely repay the mortgage) without any extra charges. Most fixed rates limit you to 10% per year.
If you did want to completely repay, you'd be better off leaving a small balance in the account until the end of the term, when you can then repay without any penalty.
#17
Aside from early repayment charges, any compelling reason to choose this 5yr fix over HSBC? (both have same rate and no fees, I know they're linked companines)
https://www.hsbc.co.uk/1/2/mortgages/products?pcode=A004048382000000000000000000

I ask because I've submitted an application to HSBC only yesterday, and that hasn't progressed much so wondering if I should switch.

Things I'm concerned about: Speed of finalising - my current deal finished at the end of the month so I'm looking to switch ASAP.


Edited By: r2mahara on Feb 16, 2017 16:36
#18
5 years at 1.94% or 10 years at 2.49%...that is the question...I've got just over 100k to pay off...ltv just over 50%...what would you do...HUKDeals?
#19
davidbrent
5 years at 1.94% or 10 years at 2.49%...that is the question...I've got just over 100k to pay off...ltv just over 50%...what would you do...HUKDeals?

If there's any chance you'd be able to repay most of the £100k within the 5 years, then go for the lower rate. I'm in the same boat and will go for a 5 year fix.

The extra .55% on the 10 year mortgage is about £500-£550 in the first few years, or £40-£45 per month. your call if it's worth the certainty of a 10 year fix.
#20
r2mahara
davidbrent
5 years at 1.94% or 10 years at 2.49%...that is the question...I've got just over 100k to pay off...ltv just over 50%...what would you do...HUKDeals?
If there's any chance you'd be able to repay most of the £100k within the 5 years, then go for the lower rate. I'm in the same boat and will go for a 5 year fix.
The extra .55% on the 10 year mortgage is about £500-£550 in the first few years, or £40-£45 per month. your call if it's worth the certainty of a 10 year fix.

Thanks for reply. Im useless at this finance. Currently overpaying about 200 quid a month with very very occasional extra lumps when I have it..so maybe better with the 10?
#21
r2mahara
Aside from early repayment charges, any compelling reason to choose this 5yr fix over HSBC? (both have same rate and no fees, I know they're linked companines)
https://www.hsbc.co.uk/1/2/mortgages/products?pcode=A004048382000000000000000000

I ask because I've submitted an application to HSBC only yesterday, and that hasn't progressed much so wondering if I should switch.

Things I'm concerned about: Speed of finalising - my current deal finished at the end of the month so I'm looking to switch ASAP.



If you're looking for fast, I wouldn't recommend HSBC. They took 3 months to remortgage me last time. Had good service from them mind you!
#22
Heat added from me thanks op, great offer for ten year fix with allowed over payments, My only problem is i am self employed and my accountant is not an appropriately qualified accountant set in first direct lending terms. Has anyone following this post got any rough costings to get my accounts retrospectively signed and over-stamped by another independent accountant.
#23
supadupasumo
r2mahara
Aside from early repayment charges, any compelling reason to choose this 5yr fix over HSBC? (both have same rate and no fees, I know they're linked companines)https://www.hsbc.co.uk/1/2/mortgages/products?pcode=A004048382000000000000000000
I ask because I've submitted an application to HSBC only yesterday, and that hasn't progressed much so wondering if I should switch.
Things I'm concerned about: Speed of finalising - my current deal finished at the end of the month so I'm looking to switch ASAP.
If you're looking for fast, I wouldn't recommend HSBC. They took 3 months to remortgage me last time. Had good service from them mind you!

Thanks for that reply - I've heard similar stories. Mind you I've applied for a mortgage with HSBC in the past and they weren't too bad - I got to the final stages and bailed though.
#24
davidbrent
r2mahara
davidbrent
5 years at 1.94% or 10 years at 2.49%...that is the question...I've got just over 100k to pay off...ltv just over 50%...what would you do...HUKDeals?
If there's any chance you'd be able to repay most of the £100k within the 5 years, then go for the lower rate. I'm in the same boat and will go for a 5 year fix.
The extra .55% on the 10 year mortgage is about £500-£550 in the first few years, or £40-£45 per month. your call if it's worth the certainty of a 10 year fix.
Thanks for reply. Im useless at this finance. Currently overpaying about 200 quid a month with very very occasional extra lumps when I have it..so maybe better with the 10?

If you're overpaying by that much, and bad at remembering to switch then the 10 year option is perhaps best.
#25
We've banked with FD for over 6 years and they're excellent, but very fussy about lending. If you have excellent credit history and can easily afford your repayments you might be lucky.
1 Like #26
Good deal, just outside the 60% ltv. Anybody know if these are portable?? May be moving in next 12 months
#27
10% at 2.49 is low. But is a long commitment to one product. I've just gone for a 2yr 1.54 fee free HSBC mortgage. Slight gamble on rates still being low in 2 years ...... everyone has different circumstances ultimately.
#28
marathonic
scottishpunter
These rates are starting to rise, I fixed with First Direct at the end of January for 1.84% 5 years - and then the rate dropped just after to 1.79% as posted in this deal from three weeks ago.

They are not rising. The deals you're quoting are the rates with arrangement fees. I've been tracking First Direct rates for ages and this is the cheapest fee-free 5-year fix ever.

The previous best First Direct 5-year fee-free fix was 2.08% - that was pulled in January and the rate was 2.19% since (until today's drop to 1.94%).

The HSBC deal you link to has comments about a 1.96% 5-year fee-free fix. This deal is 0.02% lower and has lower early repayment charges.



This is not a BTL mortgage thou is it!?
#29
spicyhotone
One thing to be aware is that the ERC is a bit different from many others. It only comes in if you repay IN FULL before the end of the mortgage term, and is based on a % of the full original mortgage at the start of the term.
This also means you can do lump sum repayments as big as you want (as long as you don't completely repay the mortgage) without any extra charges. Most fixed rates limit you to 10% per year.
If you did want to completely repay, you'd be better off leaving a small balance in the account until the end of the term, when you can then repay without any penalty.
Exactly ... you can pay it all off bar £100 (that's as low as they like to go) no ERCs and a few pence interest until the end of the fixed rate term.
#30
1.64% for a two year fixed.
#31
ljbutchik07
Gutted! on the brink of completion for remortgage.. dropped to 0.05% I wonder if they can still adjust the rate I haven't sign paper works from the solicitors
Yes they should be able to . The same happened to me
#32
I''ll be pretty much on the cusp of 60% LTV by renewal time in July. This is just going by what my house price is currently estimated to be worth on Zoopla. I understand that they'll need to do a survey but worried that this may come slightly over. Would I then be stuck with a bill for the survey if I didn't meet the 60% LTV requirement and therefore could not proceed with the 60% LTV rate deals?


Edited By: Baz1986 on Feb 17, 2017 07:57
#33
davidbrent
5 years at 1.94% or 10 years at 2.49%...that is the question...I've got just over 100k to pay off...ltv just over 50%...what would you do...HUKDeals?
You've got to think about a lot of things to commit to 10 years. If you won £250k would you move house? What happens if you lose your job, do you live in an area where there are plenty of jobs around? or do you live in a small town with limited work opportunities? Do you have kids who need to be in catchment areas for schools going forward? All things to consider before taking a 10 year fix.
#34
First Direct are very tight on affordability criteria, if you have concerns you may wish to go with a broker rather than potentially wasting your time going direct. The reason their rates are so good is that they are exceptionally choosey about who they lend to.

Edited By: blueincubus on Feb 17, 2017 08:38
#35
sazandy
Good deal, just outside the 60% ltv. Anybody know if these are portable?? May be moving in next 12 months

Probably are portable - BUT you will be reassessed for affordability when you move and they may not be willing to lend against your new place or and potential increased lending that you need. This would leave you either unable to move or having to pay early repayment charges to get a new mortgage with someone else. Be very careful.

Edited By: blueincubus on Feb 17, 2017 08:40
#36
cadmus
I need a £120 k mortgage and I own my house which is valued at £270 k ..I need the security of a long fixed mortgage and do you think I would qualify and would this be suitable for me


You don't own the house if you still have a mortgage
#37
madmaxpayne
cadmus
I need a £120 k mortgage and I own my house which is valued at £270 k ..I need the security of a long fixed mortgage and do you think I would qualify and would this be suitable for me
You don't own the house if you still have a mortgage

This can of worms. Before someone else gets in, who's name is on the deeds, etc. etc. etc. :)
#38
blueincubus
First Direct are very tight on affordability criteria, if you have concerns you may wish to go with a broker rather than potentially wasting your time going direct. The reason their rates are so good is that they are exceptionally choosey about who they lend to.


I asked my usual broker and he said First Direct are not on his database. I presumed that meant you have to go direct to First Direct. Maybe I'm wrong. if my direct application fails, I may try and find a different broker.
1 Like #39
spik3_my_drink
blueincubus
First Direct are very tight on affordability criteria, if you have concerns you may wish to go with a broker rather than potentially wasting your time going direct. The reason their rates are so good is that they are exceptionally choosey about who they lend to.
I asked my usual broker and he said First Direct are not on his database. I presumed that meant you have to go direct to First Direct. Maybe I'm wrong. if my direct application fails, I may try and find a different broker.

You are correct - First Direct have never dealt with brokers and HSBC have only started recently offering their products through some brokers.

A large number of applications for credit in a short space of time can hinder a mortgage application - but a single application to a lender that doesn't deal through brokers should have little, to no, impact.

When getting my current mortgage through First Direct, the intention was always one direct application followed by going the broker route if unsuccessful - but I was successful and am currently on a lifetime tracker at a current rate of 1.54% (and considering the 1.94% 5-year fix on offer here).
1 Like #40
spik3_my_drink
blueincubus
First Direct are very tight on affordability criteria, if you have concerns you may wish to go with a broker rather than potentially wasting your time going direct. The reason their rates are so good is that they are exceptionally choosey about who they lend to.
I asked my usual broker and he said First Direct are not on his database. I presumed that meant you have to go direct to First Direct. Maybe I'm wrong. if my direct application fails, I may try and find a different broker.

Apologies you are quite right First Direct & HSBC only allow direct applications - ignore me. They're worth a try, but they are super tight - they offered me £120k less than other lenders. If your broker is trully whole market - i.e. someone you pay a fee to use that doesn't take commission then they sholud be able to advise broadly on the likelyhood of being accepted by FD - but yes you would need to apply direct.

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