10 year fixed rate mortgage @ 2.49% (5y: 1.84%, 2y: 1.59%), no fees, unlimited extra repayments - First Direct
1688°Expired

10 year fixed rate mortgage @ 2.49% (5y: 1.84%, 2y: 1.59%), no fees, unlimited extra repayments - First Direct

109
Found 6th Aug 2017Edited by:"tomtomato"
  • 10 Year Fixed Repayment Mortgage @ 2.49% (Link)
  • 5 Year Fixed Repayment Mortgage @ 1.84% (Link)
  • 2 Year Fixed Repayment Mortgage @ 1.59% (Link)

Maximum LTV 60% (so minimum deposit/equity would be 40%).

No upfront fees (booking or arrangement), "fee saver" versions
Unlimited lump sum repayment/fee-free extra repayments!

While there is an early redemption fee (3% of the original mortgage value initially, and then 2%), I guess you could just keep the mortgage "open" at £1 until the end of its term (and let FD terminate for free, as it would cost them more in admin fees)!

A bit of a contradiction between having unlimited repayment and early redemption fee at the same time...

Basically, it looks like those FD fixed rate mortgages are without any drawbacks, and with great rate! Fixing a mortgage for 2.49% over 10 years is a great opportunity, as the base rates can't really go much lower.

Note: FD are notorious for being one of the most picky/selective lenders (including based on own experience), so even qualifying people may end up not getting those mortgages.
Community Updates
First Direct Deals

Groups

Top comments
My wife wants a house that's 240k any suggestions on how I get the initial 96k needed for this deal? Currently 'change you wife' is in the lead
Unlimited overpayments are the clincher for this one. Fantastic way to guarantee a great return on your money by saving thousands in interest and get yourself debt free far quicker.
mortgage? what's a mortgage? Is it something poor people have?
stefanjulia3 m ago

What ia the LTV please


Or do you mean, what does LTV mean? If thats the case, Max Loan to Value ratio. And remember kids, Google is your friend
109 Comments
Erc 3% in first year
2% after, calculated from original amount.
LTV?
What ia the LTV please
stefanjulia2 m ago

What ia the LTV please


See 1 comment above
stefanjulia3 m ago

What ia the LTV please


Or do you mean, what does LTV mean? If thats the case, Max Loan to Value ratio. And remember kids, Google is your friend
Unlimited overpayments are the clincher for this one. Fantastic way to guarantee a great return on your money by saving thousands in interest and get yourself debt free far quicker.
Thank you Neil,

I have learned something today.
How long will they hold the rate from date of application? Putting our house on the market next week!
good deal
My wife wants a house that's 240k any suggestions on how I get the initial 96k needed for this deal? Currently 'change you wife' is in the lead
"If you take a Fixed Rate Mortgage and you repay the whole of your mortgage during the Fixed Rate period an Early Repayment Charge will apply. This charge is calculated at 3% of the original mortgage amount during first year of the Fixed Rate period and 2% of the original mortgage amount if the mortgage is closed in any subsequent year during the Fixed Rate period. If you choose to repay your mortgage after the Fixed Rate period has ended, no Early Repayment Charge will apply."

Keep this in mind - you will still pay an ERC on the original mortgage amount if you close / move your mortgage at any point during the 10 year term, even if you overpay during that time.

e.g. You could overpay until you have a mortgage balance of £1 but if you repay fully you will pay £3k on a £100k mortgage in year 1, or £2k on a £100k mortgage in years 2-10
Edited by: "splodgebob" 6th Aug 2017
Quite tempted to look into this a bit more.
Have 2 years left of a 5 year fix so I would pay nearly £2.5k penalty to leave now. However the rate is 0.5% cheaper than my existing which would mean £20 pm cheaper which results in £2k cheaper overall over the 10 year term.

Factor in that in 2 years time Brexit may mean the rates are doing funny things, and that over 10 years I may well have to pay 2 or 3 sets of arrangement fees, and this product could well be my best bet for the bank balance and stability.
holeymoley1839 m ago

Quite tempted to look into this a bit more.Have 2 years left of a 5 year …Quite tempted to look into this a bit more.Have 2 years left of a 5 year fix so I would pay nearly £2.5k penalty to leave now. However the rate is 0.5% cheaper than my existing which would mean £20 pm cheaper which results in £2k cheaper overall over the 10 year term. Factor in that in 2 years time Brexit may mean the rates are doing funny things, and that over 10 years I may well have to pay 2 or 3 sets of arrangement fees, and this product could well be my best bet for the bank balance and stability.


The Brexit variable is key here, we have no idea how that might benefit us or screw things royally, so a 10yr fixed like this seems a nice safe bet.
Just to note that they have very low approval rate.
I bank with FD and have an excellent credit score but was rejected for a mortgage application.
I've been approved with every other bank I've approached since but for some unknown reason FD didn't want to know! Talking to a mortgage advisor, it's difficult to be approved by FD.
RJ11 h, 15 m ago

How long will they hold the rate from date of application? Putting our …How long will they hold the rate from date of application? Putting our house on the market next week!

6 months I think
i signed up to this around April time . took a few months to arrange and have just paid my first payment and 119 to go ...... Their customer service is outstanding and very thorough as in they go into every bit of financial detail and every worse case scenario just to make sure you can afford the repayments .
The only thing i would Strongly recommend is NOT using their conveyancers ENACT ... i was told i would get charged approx £250 plus vat ( to take my wifes name off the deeds - Divorce) which was less than 50% cheaper than most solicitors BUT the stress these guys caused me and mistakes they made and dragged everything out cost me many £100s more with additional costs incurred... i would never ever use ENACT if they were FREE .... use your own solicitors to do the legal stuff ... loads safer and quicker !
Guys, I can't seem to find " or 1.59% for 2 years." Can anybody please provide me the link.
Thanks
jcluk4 h, 12 m ago

Unlimited overpayments are the clincher for this one. Fantastic way to …Unlimited overpayments are the clincher for this one. Fantastic way to guarantee a great return on your money by saving thousands in interest and get yourself debt free far quicker.


What does this mean sorry?
I've never had a Mortgage before, looking to get our first in the next couple of months...

At the end of the 10 years what happens? I presume I go to a standard variable rate? Am I then free to move to another Mortgage provider and not have to pay an early redemption fee of any sorts? Or am I tied to First Direct for the term of the mortgage (25y)

Thanks in advance!
3 mths before the mortgage term is up look for the next best deal and then arrange for it all to be swapped on the at the old one finishes
In no way are you tied in for 25 years
chrisdarl6 m ago

I've never had a Mortgage before, looking to get our first in the next …I've never had a Mortgage before, looking to get our first in the next couple of months... At the end of the 10 years what happens? I presume I go to a standard variable rate? Am I then free to move to another Mortgage provider and not have to pay an early redemption fee of any sorts? Or am I tied to First Direct for the term of the mortgage (25y)Thanks in advance!


Tied to them for the duration of fixed rate only. Can only leave within that duration by paying a penalty. You will then move onto standard variable rate which is normally quite high but ou are then free to shop about and move to another product that suits your need.
chrisdarl6 m ago

I've never had a Mortgage before, looking to get our first in the next …I've never had a Mortgage before, looking to get our first in the next couple of months... At the end of the 10 years what happens? I presume I go to a standard variable rate? Am I then free to move to another Mortgage provider and not have to pay an early redemption fee of any sorts? Or am I tied to First Direct for the term of the mortgage (25y)Thanks in advance!


After the term you would go to the standard rate. At the end of the term you are free to go elsewhere.


Get yourself some proper advise though. This is a big commitment!
japes3 h, 9 m ago

Just to note that they have very low approval rate.I bank with FD and have …Just to note that they have very low approval rate.I bank with FD and have an excellent credit score but was rejected for a mortgage application.I've been approved with every other bank I've approached since but for some unknown reason FD didn't want to know! Talking to a mortgage advisor, it's difficult to be approved by FD.


I am currently going through the process and have banked with FD for 12 years and have a current mortgage with them, I am taking out a new mortgage for the same piddly amount and the LTV is ( SEVEN) 7%. They want to know every minor detail about your finances to the extent that the wife recently banked a petty cash cheque from work for £25 and I was interrogated over it! Unbelievable!
Thanks for your help, everyone
michaeljb5 h, 16 m ago

My wife wants a house that's 240k any suggestions on how I get the initial …My wife wants a house that's 240k any suggestions on how I get the initial 96k needed for this deal? Currently 'change you wife' is in the lead

Go with your gut feeling... Stick with the lead plan it's best option in long run!
Preying_Eyes1 h, 40 m ago

Guys, I can't seem to find " or 1.59% for 2 years." Can anybody please …Guys, I can't seem to find " or 1.59% for 2 years." Can anybody please provide me the link.Thanks


I have updated the description with the various links
muffboy1 h, 17 m ago

I am currently going through the process and have banked with FD for 12 …I am currently going through the process and have banked with FD for 12 years and have a current mortgage with them, I am taking out a new mortgage for the same piddly amount and the LTV is ( SEVEN) 7%. They want to know every minor detail about your finances to the extent that the wife recently banked a petty cash cheque from work for £25 and I was interrogated over it! Unbelievable!


lol ive had the exactly same thing, i applied for there fixed 2yr rate, only need 43k mortgage on a 700k house so very low LTV but ive had to send numerous bank statements. then i had surveyor round, it was just a standard valuation for the bank but he was measuring up the house and wanted to go in the loft. I thought for that amount it would just be a driveby for the valuation. Wifes had to explain the money transfers on her statement three times
japes4 h, 30 m ago

Just to note that they have very low approval rate.I bank with FD and have …Just to note that they have very low approval rate.I bank with FD and have an excellent credit score but was rejected for a mortgage application.I've been approved with every other bank I've approached since but for some unknown reason FD didn't want to know! Talking to a mortgage advisor, it's difficult to be approved by FD.

You don't know what your credit score is for the mortgage. The scores you get from the credit reference agencies mean absolutely nothing. Banks don't take account of it when offering credit. They score in their own way.
Whats the maximum age limit for tnis mortgage?
japes5 h, 24 m ago

Just to note that they have very low approval rate.I bank with FD and have …Just to note that they have very low approval rate.I bank with FD and have an excellent credit score but was rejected for a mortgage application.I've been approved with every other bank I've approached since but for some unknown reason FD didn't want to know! Talking to a mortgage advisor, it's difficult to be approved by FD.

If an establishments rejects you for a loan you're entitled to know the reason. Don't recall the relevant legislation but it's out there.
mortgage? what's a mortgage? Is it something poor people have?
stefanjulia7 h, 22 m ago

What ia the LTV please

LTV means 'loan to value' its 60% so you need a big deposit. Basically a 40k deposit on a 100k house.
ran123ran48 m ago

Whats the maximum age limit for tnis mortgage?


It can go into your retirement but they base it on what pension you get .
Hsbc have a 2yr fixed at 60% ltv at 1.49 fee free where you can overpay 10% of the mtge amount per year without penalty. 3 yr is 1.69% and 5 yr is 1.84%
splodgebob7 h, 38 m ago

"If you take a Fixed Rate Mortgage and you repay the whole of your …"If you take a Fixed Rate Mortgage and you repay the whole of your mortgage during the Fixed Rate period an Early Repayment Charge will apply. This charge is calculated at 3% of the original mortgage amount during first year of the Fixed Rate period and 2% of the original mortgage amount if the mortgage is closed in any subsequent year during the Fixed Rate period. If you choose to repay your mortgage after the Fixed Rate period has ended, no Early Repayment Charge will apply."Keep this in mind - you will still pay an ERC on the original mortgage amount if you close / move your mortgage at any point during the 10 year term, even if you overpay during that time. e.g. You could overpay until you have a mortgage balance of £1 but if you repay fully you will pay £3k on a £100k mortgage in year 1, or £2k on a £100k mortgage in years 2-10

Sorry but you cant have a mortgage with unlimited overpayments that also has early repayment charges - they are contradictory
HSBC allows 10% overpayments of the outstanding balance at the start or the without penalty so FD may be similar
justinlinham15 m ago

Sorry but you cant have a mortgage with unlimited overpayments that also …Sorry but you cant have a mortgage with unlimited overpayments that also has early repayment charges - they are contradictory


Yes you can. It's a bit weird, but repay 99% of the loan and don't pay the early redemption charge. You're only penalised if you pay the whole thing off.
stevenmcdowall391 h, 16 m ago

mortgage? what's a mortgage? Is it something poor people have?


Lots of rich people have a mortgage or, more likely, multiple mortgages...
Post a comment
Avatar
@
    Text