10 Year Fixed Rate Mortgage 2.49% - No Fees - 60% LTV (Loan to Value) @ First Direct
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10 Year Fixed Rate Mortgage 2.49% - No Fees - 60% LTV (Loan to Value) @ First Direct

125
Found 3rd Apr
Have been looking at mortgages and looks like a lot of the 5 year fixed deals have been hiked in rate. The 10 year fix for First Direct is still 2.49% which looks a very competitive long term mortgage deal with no fees

Obviously not for everyone due to the 60% Loan to Value but if you did have the capital and are looking for a long term fixed rate with the benefit of knowing what your payments will be in the next 10 years then maybe an option for you.

  • 10-year fix at 2.49%
  • No fees - no booking fee - no arrangement fees
  • Max LTV is 60%
  • Unlimited overpayments without charge (see below)
  • If you fully repay 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


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A few more things to note

  • First Direct are known to have quite strict lending criteria
  • Goes without saying but look at the other deals available from other lenders and seek independent financial advice if needed
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Good deal just as long as you don't plan to repay early - 2% (of original mortgage amount) early repayment fee from years 2-10 - ouch .
Really good deal, great for people who are likely to have life changes (career breaks / babies) and need to know their monthly commitments for years to come. Heat added.
And here's me struggling to save for a 90% LTV mortgage :')
lf1983lf5 m ago

OP is right to mention strict lending criteria. I spent over an hour on …OP is right to mention strict lending criteria. I spent over an hour on the phone to FD trying to open a current account and the computer still said no. Couldn't explain it for the life of me - healthy finances with nothing dodgy on my credit report, home with a mortgage, previous customer of theirs etc.I gave up at that point, only wanted it for the savings rate!


As someone newly self-employed without a single set of accounts yet published I was stunned that they immediately said yes to me - I was expecting a right faff.
125 Comments
The phone calls took ages but I got 2.29 a while back. No complaints tbh
That is an incredibly good deal, given there is no fee!!!!
Good deal just as long as you don't plan to repay early - 2% (of original mortgage amount) early repayment fee from years 2-10 - ouch .
Really good deal, great for people who are likely to have life changes (career breaks / babies) and need to know their monthly commitments for years to come. Heat added.
1% cheaper than my current which I got to wait till next year to change.
And here's me struggling to save for a 90% LTV mortgage :')
Very good!
OP is right to mention strict lending criteria. I spent over an hour on the phone to FD trying to open a current account and the computer still said no. Couldn't explain it for the life of me - healthy finances with nothing dodgy on my credit report, home with a mortgage, previous customer of theirs etc.

I gave up at that point, only wanted it for the savings rate!
lf1983lf5 m ago

OP is right to mention strict lending criteria. I spent over an hour on …OP is right to mention strict lending criteria. I spent over an hour on the phone to FD trying to open a current account and the computer still said no. Couldn't explain it for the life of me - healthy finances with nothing dodgy on my credit report, home with a mortgage, previous customer of theirs etc.I gave up at that point, only wanted it for the savings rate!


As someone newly self-employed without a single set of accounts yet published I was stunned that they immediately said yes to me - I was expecting a right faff.
I took out this mortgage in January. It was a good service from both First Direct and Enact who handled the conveyancing. I moved from Santander. Although I lost out on the 1% mortgage cashback on the 123 account I prefer this deal.
First Direct are the best bank ever, if it's the right deal for you, you won't regret
me_lee15 m ago

As someone newly self-employed without a single set of accounts yet …As someone newly self-employed without a single set of accounts yet published I was stunned that they immediately said yes to me - I was expecting a right faff.


You can call them for me next time
Applied for this in October 2017, only just finalized last week.
krizw3rd Apr

Applied for this in October 2017, only just finalized last week.


Never knew that you could apply in advance. My mortgage is due to renew at end of October this year. So about six months. Is this something I could do and have it finalise in October?
arjun31144 m ago

1% cheaper than my current which I got to wait till next year to change.


Might be worth changing now? Depending on the size of your mortgage might be wirth paying the fees to exit and then take up this before it jumps. Will interest rates go back to .25% thats the gamble you take. At least this is low all the time! If a cheape one comes on then oh well. But if a more expensive one comes on then your quids in. And remember overpaying shaves interest off anyways.

I have two years to go so not sure what to do.m
me_lee57 m ago

Good deal just as long as you don't plan to repay early - 2% (of original …Good deal just as long as you don't plan to repay early - 2% (of original mortgage amount) early repayment fee from years 2-10 - ouch .


You can avoid that by just leaving the mortgage sat at zero balance until the 10 years is up. Only really applies if you want to switch to another lender part way through the term
FD are quite picky in who they lend to
Barthanes20 m ago

Never knew that you could apply in advance. My mortgage is due to renew at …Never knew that you could apply in advance. My mortgage is due to renew at end of October this year. So about six months. Is this something I could do and have it finalise in October?


This deal was available last year. it comes and goes. Yes, the process for me took ages and then when you get the deal you have up to 6 months to go ahead with it, as i see it or maybe it's 6 months from your application. CHECK!
We considered this deal but went for the 5 year fixed at 1.94%. I worked out that the 5 year rates would have to be c4% in 5 years time to make paying more now on the 10 year rate the better option. I factored in overpaying the savings I made on the lower 5 year rate so I had less outstanding in 5 years.

Sounds complicated but a simple spreadsheet did the trick!

The 5 year rate is 1.99% now so might still be worth looking at this if the 10 year deal is too long for some.

PS - the process isn't great - FD don't keep you informed of whats happening. Enact on the other hand are very good
Edited by: "BigD21" 3rd Apr
Barthanes24 m ago

Never knew that you could apply in advance. My mortgage is due to renew at …Never knew that you could apply in advance. My mortgage is due to renew at end of October this year. So about six months. Is this something I could do and have it finalise in October?


Yes - I have just reserved this deal a couple of days ago but am not due to remortgage until September. They are fine with it up to six months in advance. So far the application has gone very smoothly and I'm really happy with the level of service.
I already have a FD mortgage phone call took less than 10 mins... booked for 6 months time... can change before then for no fees should a better deal come along...brilliant....
Only took me 7 months to swap my mortgage to First Direct. And I actually bank with them. You need a lot of patience
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Nicam32 m ago

You can avoid that by just leaving the mortgage sat at zero balance until …You can avoid that by just leaving the mortgage sat at zero balance until the 10 years is up. Only really applies if you want to switch to another lender part way through the term


Also looking at the terms:

Early Repayment Charges do not apply to first direct mortgages if you choose to make overpayments or lump sum payments to your mortgage.
arjun3111 h, 58 m ago

1% cheaper than my current which I got to wait till next year to change.


Sometimes it's worth paying the buy out clause to get a better rate. We have done it before, but only specific circumstances does it make it cheaper. (Ie our original 5 year fixed rate was terrible!!)
kangarookelv5 m ago

Sometimes it's worth paying the buy out clause to get a better rate. We …Sometimes it's worth paying the buy out clause to get a better rate. We have done it before, but only specific circumstances does it make it cheaper. (Ie our original 5 year fixed rate was terrible!!)

I'd have to fork out 5k, right now I don't know if that would be good or not, might have to risk the 1 year wait.

With Brexit looming, I don't know which way it would go.
Good deal, but only got 3 years left WHOOP WHOOP
krizw2 h, 31 m ago

Applied for this in October 2017, only just finalized last week.


I applied in Oct also and it was finalised at the end of March, I haven't applied for a remortgage (Due to end of fixed deals) with another lender for years so it was a big change from my previous time (15yrs ago). The level of detail they now require (Like all the rest I assume) is a ball ache, but First Direct and Enact (Their conveyors) were very efficient for me, No complaints and glad I don't have to do this ever again
me_lee2 h, 54 m ago

As someone newly self-employed without a single set of accounts yet …As someone newly self-employed without a single set of accounts yet published I was stunned that they immediately said yes to me - I was expecting a right faff.


Really? Was in same position last year July. Have been a long term FD customer of 20 years. They said no ability to offer mortgage without 2 years of accounts. Ended up with a better great deal via a specialist broker in the end.
Excellent, wish they had this on a buy to let too!
BigD212 h, 1 m ago

We considered this deal but went for the 5 year fixed at 1.94%. I worked …We considered this deal but went for the 5 year fixed at 1.94%. I worked out that the 5 year rates would have to be c4% in 5 years time to make paying more now on the 10 year rate the better option. I factored in overpaying the savings I made on the lower 5 year rate so I had less outstanding in 5 years.Sounds complicated but a simple spreadsheet did the trick!The 5 year rate is 1.99% now so might still be worth looking at this if the 10 year deal is too long for some.PS - the process isn't great - FD don't keep you informed of whats happening. Enact on the other hand are very good


I also looked at the 5 year 1.99% deal but worked out that the rate in five years time would need to be less than 3% to make it a better option than the 10 year deal. There's a really good calculator on the MSE site that can help in weighing up options.
I changed from Firstdirect back in December, only took 5 weeks. Firstdirect were great, Enact not so much.
Pughy28 m ago

I applied in Oct also and it was finalised at the end of March, I haven't …I applied in Oct also and it was finalised at the end of March, I haven't applied for a remortgage (Due to end of fixed deals) with another lender for years so it was a big change from my previous time (15yrs ago). The level of detail they now require (Like all the rest I assume) is a ball ache, but First Direct and Enact (Their conveyors) were very efficient for me, No complaints and glad I don't have to do this ever again


I started my application in October. But mistakes by FD were then compounded by Enact. I personally found Enact incompetent and they made mistake after mistake, asking for the same documents over and over again. The mortgage has finally gone through now, and I agree that is a great deal, but the application for these remortgage was unnecessarily difficult due to Enact’s cost cutting procedures.
wakingmammoth1 h, 22 m ago

I also looked at the 5 year 1.99% deal but worked out that the rate in …I also looked at the 5 year 1.99% deal but worked out that the rate in five years time would need to be less than 3% to make it a better option than the 10 year deal. There's a really good calculator on the MSE site that can help in weighing up options.



Agree it was closer to 3% (3.04% I made it) if you didn't overpay what you were saving. Also I was comparing 1.94% which was the 5 year rate at the time.
Hmmm decisions decisions......I have 3 months left of a terrible 10 yr fix at 5.29% with Barclays. I will then go on to a variable rate of +0.95 BR. I've calculated that I can overpay to get it paid off in 5 years. So do I switch to a 1.99% 5 yr fix? I think it's probably worth doing, esp as FD seem to allow unlimited over payments.
Great deal. I fixed mine (also 60%) for 3.19% for 10 years 2 years ago. Gutted.
me_lee5 h, 36 m ago

As someone newly self-employed without a single set of accounts yet …As someone newly self-employed without a single set of accounts yet published I was stunned that they immediately said yes to me - I was expecting a right faff.


yes to a mortgage?
FD are super. Their mortgage process is torturous but great rates. I'm on their offset mortgage at 2.29 % fixed. I'm fortunate enough to be 100% offset so monthly charge is zero. I could pay off, but I like having instant access to my pot, just in case I want to do a runner 🏃 ha ha
sb18763 h, 6 m ago

Excellent, wish they had this on a buy to let too!


Need to check if they give consent to let.
Currently 2y left on a 5y fixed after having an initial 2y fixed. W/ first direct. Both times,

Easy to deal with, takes about an hour to go through the application over the phone. Would recommend them. The unlimited over payments are a blessing.

I hear rumours of strict lending, don't know if true, but I managed to get a mortgage 2.5x salary and having banked with them 5y before applying.. I don't have a reference for others thougy
Can you make interest free overpayments on this deal. Im due to come out of a 5 year fix at 2.49% with HSBC in August, I set my repayments 20% lower than I wanted with them when I got the deal then immediately upped them by 20% when It started as thats the max you were allowed with hsbc at the time.
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