5 year Fixed Rate Mortgage 1.84% -  No Fees -  Unlimited extra repayments @ First Direct
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5 year Fixed Rate Mortgage 1.84% - No Fees - Unlimited extra repayments @ First Direct

107
Found 15th Aug 2017
Spotted that FD have further reduced their 5 year fix mortgage to 1.84% which matches the HSBC deal but with unlimited extra overpayments.

Maximum LTV is 60%

Recent thread for reference
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    firstofficer27 m ago

    Nice rate but low LTV, hence cold from me.Sorry. Thanks for posting …Nice rate but low LTV, hence cold from me.Sorry. Thanks for posting anyway..I'll get my coat..


    because its not for YOU doesn't deserve to be cold. Good deal op for those who have a low ltv
    Avatar
    deleted90968
    The last few years of the mortgage term are glorious as you see the outstanding loan reduce really quickly as the balance of payments goes onto the capital instead of interest and the sight of freedom appears on the horizob.

    I would have snapped this up but I'm already in one that will take me to the end of the mortage.
    Chanchi3215th Aug

    that's right - FD have a pretty stringent credit criteria so worth …that's right - FD have a pretty stringent credit criteria so worth considering before applying


    to be honest if you are looking for a mortgage then an applicant needs to get their house in order, savings up, debts down, and no late payments and especially no unauthorised overdraft spend. its all simple,
    its not exactly difficult to setup a DD for a cc and or keep track of current account / debit card spend.

    also advisable to hold off that new telly on finance, car loan, or the latest smart phone, once the mortgage is agreed then its fine to take on the extra debt.


    too many people live beyond their means..
    Edited by: "whatyadoinsucka" 17th Aug 2017
    Fab deal, nice find chichi.

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    107 Comments
    Nice
    Fab deal, nice find chichi.

    31695649-VmYdP.jpg
    Thanks Chanchi, was looking for mortgage after chasing every deal posted here...
    Worth reading the thread in the link that the OP put up. Hard to get a mortgage with and if declined, that's on your credit file .... (Please correct me if I am wrong on this one as I was interested in that comment....)
    No fees?

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    Tempting deal. Im currently on their 1.29+BOE lifetime tracker with a current rate of 1.54% - but a 0.3% premium is a small price to pay for the security of a 5 year fix.
    Original Poster
    jonnyclewlow15 m ago

    Worth reading the thread in the link that the OP put up. Hard to get a …Worth reading the thread in the link that the OP put up. Hard to get a mortgage with and if declined, that's on your credit file .... (Please correct me if I am wrong on this one as I was interested in that comment....)




    that's right - FD have a pretty stringent credit criteria so worth considering before applying
    Edited by: "Chanchi32" 15th Aug 2017
    excellent!! cheers!!
    marathonic14 m ago

    Tempting deal. Im currently on their 1.29+BOE lifetime tracker with a …Tempting deal. Im currently on their 1.29+BOE lifetime tracker with a current rate of 1.54% - but a 0.3% premium is a small price to pay for the security of a 5 year fix.


    Maybe so, but with brexit on the horizon can you realistically see rates going up? After all, banks aren't in the business of losing money, so they must be fairly certain rates will stay low given they are offering this deal.
    turbo_c20 m ago

    Maybe so, but with brexit on the horizon can you realistically see rates …Maybe so, but with brexit on the horizon can you realistically see rates going up? After all, banks aren't in the business of losing money, so they must be fairly certain rates will stay low given they are offering this deal.

    True, but for me for example, with only circa 5 years to go, the peace of mind is a very comforting thought.
    Atom were offering 2.39% on 85% ltv for 5 years, mine completed yesterday. Not as good obviously but I owe a lot more!
    Avatar
    deleted90968
    The last few years of the mortgage term are glorious as you see the outstanding loan reduce really quickly as the balance of payments goes onto the capital instead of interest and the sight of freedom appears on the horizob.

    I would have snapped this up but I'm already in one that will take me to the end of the mortage.
    Chanchi3215th Aug

    that's right - FD have a pretty stringent credit criteria so worth …that's right - FD have a pretty stringent credit criteria so worth considering before applying


    to be honest if you are looking for a mortgage then an applicant needs to get their house in order, savings up, debts down, and no late payments and especially no unauthorised overdraft spend. its all simple,
    its not exactly difficult to setup a DD for a cc and or keep track of current account / debit card spend.

    also advisable to hold off that new telly on finance, car loan, or the latest smart phone, once the mortgage is agreed then its fine to take on the extra debt.


    too many people live beyond their means..
    Edited by: "whatyadoinsucka" 17th Aug 2017
    jonnyclewlow1 h, 18 m ago

    Worth reading the thread in the link that the OP put up. Hard to get a …Worth reading the thread in the link that the OP put up. Hard to get a mortgage with and if declined, that's on your credit file .... (Please correct me if I am wrong on this one as I was interested in that comment....)


    You are wrong.

    Declines do not show on a credit file, mereley show as a search
    anyone know how long you can delay this? current one ends in 5 months.
    Seems expensive to me for 60LTV, I suppose it depends on your circumstances, but if I was a few years away from clearing my mortgage and not 33 I'd probably be less bothered about the terms (currently paying 1.14% with cashback on payments).
    Misleading deal:

    "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."


    So you DO have an Early Repayment charge if you clear the balance, which isn't great.

    Probably better with Coventry BS who have no ERC
    Original Poster
    ricey3 m ago

    Misleading deal:"If you take a Fixed Rate Mortgage and you repay the whole …Misleading deal:"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."So you DO have an Early Repayment charge if you clear the balance, which isn't great. Probably better with Coventry BS who have no ERC




    Was covered in the previous thread:

    "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)! "
    ghostm4n48 m ago

    True, but for me for example, with only circa 5 years to go, the peace of …True, but for me for example, with only circa 5 years to go, the peace of mind is a very comforting thought.


    Given the current deal the user has though, it'd only take a raise in the base rate to 0.75% (so a raise of 0.5%) in the next 2.5 years, which in entirely feasible, to mean they are losing out vs the fixed term deal offered here.

    I think the BoE will have to raise rates soon to control inflation, which is on course to be driven higher by Brexit when it kicks in. The latest inflation figures are due this morning @ 9:30am.
    31696261-X1BSs.jpg

    Heat added
    Chanchi3225 m ago

    Was covered in the previous thread:"While there is an early redemption fee …Was covered in the previous thread:"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)! "


    Is that possible though?
    Nice rate but low LTV, hence cold from me.

    Sorry. Thanks for posting anyway..

    I'll get my coat..
    Scorpion44 m ago

    Given the current deal the user has though, it'd only take a raise in the …Given the current deal the user has though, it'd only take a raise in the base rate to 0.75% (so a raise of 0.5%) in the next 2.5 years, which in entirely feasible, to mean they are losing out vs the fixed term deal offered here.I think the BoE will have to raise rates soon to control inflation, which is on course to be driven higher by Brexit when it kicks in. The latest inflation figures are due this morning @ 9:30am.



    A rate rise isn't the only means to control inflation. There's no point dampening consumer ability to spend if it isn't consumer spending that is driving inflation. If it's brexit driven, then a rise in interest rates will do little to calm inflation.
    firstofficer27 m ago

    Nice rate but low LTV, hence cold from me.Sorry. Thanks for posting …Nice rate but low LTV, hence cold from me.Sorry. Thanks for posting anyway..I'll get my coat..


    because its not for YOU doesn't deserve to be cold. Good deal op for those who have a low ltv
    Y
    Chanchi322 h, 47 m ago

    Was covered in the previous thread:"While there is an early redemption fee …Was covered in the previous thread:"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)! "


    You will still be required to make the minimum monthly repayment, regardless of whether you have overpaid. I think you would need to make sure that you leave an outstanding balance exceeding the remaining payments expected by the end of your introductory deal. So if you have 5 years remaining on your intro deal, and your minimum monthly payment is £300 a month, you would need to ensure that you leave £300*12*5=£18,000 + £1 to ensure you don't pay off mortgage fully before the end of the deal and trigger the Early Redemption Charge.

    Edit:Further comments suggest that you may be able to request that your minimum repayment be recalculated.
    Edited by: "trickyrick" 15th Aug 2017
    First direct
    First nightmare
    They will want to know how many condoms a month you buy before you get the mortgage
    If it's like Hsbc policy ring and ask for a reset of the minimum payment, when I have lump summed in the past the repayment amount changes inline with the new balance and term outstanding.
    Therefore if you had £1 balance over 12 months they amend your payment to circa 9p.

    no need to ever pay off to be liable to ERCs
    Edited by: "whatyadoinsucka" 15th Aug 2017
    Avatar
    deleted90968
    trickyrick57 m ago

    Y You will still be required to make the minimum monthly repayment, …Y You will still be required to make the minimum monthly repayment, regardless of whether you have overpaid. I think you would need to make sure that you leave an outstanding balance exceeding the remaining payments expected by the end of your introductory deal. So if you have 5 years remaining on your intro deal, and your minimum monthly payment is £300 a month, you would need to ensure that you leave £300*12*5=£18,000 + £1 to ensure you don't pay off mortgage fully before the end of the deal and trigger the Early Redemption Charge.



    But that would depend on if the terms allowed payment holidays.
    My mortgage allows overpayments and then payment holidays that can be covered by the overpayments.
    whatyadoinsucka31 m ago

    If it's like Hsbc policy ring and ask for a reset of the minimum payment, …If it's like Hsbc policy ring and ask for a reset of the minimum payment, when I have lump summed in the past the repayment amount changes inline with the new balance and term outstanding. Therefore if you had £1 balance over 12 months they amend your payment to circa 9p.no need to ever pay off to be liable to ERCs


    Ah i didn't know that. I overpay regularly and hadn't noticed that my repayment amount changes automatically, so possibly it's something you need to ask about.
    androoski15th Aug 2017

    But that would depend on if the terms allowed payment holidays. My …But that would depend on if the terms allowed payment holidays. My mortgage allows overpayments and then payment holidays that can be covered by the overpayments.


    I believe there is no official payment holiday as standard. Possibly you could negotiate something.
    Nicolas43 m ago

    First direct First nightmareThey will want to know how many condoms a …First direct First nightmareThey will want to know how many condoms a month you buy before you get the mortgage


    I bank with them, so for me it is pretty painless. I just called and rang and told them i wanted to do an execution only deal. The guy called back within a few minutes i was approved.
    For a normal man, who is yet to buy a home in the UK - Is this really achievable ?

    [Quote]
    Maximum LTV is 60%
    [/Quote]

    Do people really read before voting hot ???

    For a 100k home, you need to have a 40k deposit.
    prisat5 m ago

    For a normal man, who is yet to buy a home in the UK - Is this really …For a normal man, who is yet to buy a home in the UK - Is this really achievable ? [Quote]Maximum LTV is 60%[/Quote]Do people really read before voting hot ???For a 100k home, you need to have a 40k deposit.


    Of course we read - it is a good deal just like all deals, its not for everyone.
    androoski15th Aug 2017

    The last few years of the mortgage term are glorious as you see the …The last few years of the mortgage term are glorious as you see the outstanding loan reduce really quickly as the balance of payments goes onto the capital instead of interest and the sight of freedom appears on the horizob.I would have snapped this up but I'm already in one that will take me to the end of the mortage.


    Can we get real please ? House prices have rose to over 50 % in the last 3-4 years which is completely unacceptable. This trend is not acceptable and if you think this is going to continuem iam sorry, we have a problem.

    Whats the point in low interest rate for mortgages, if the cost of the home has almost doubled ??? There is no balance.
    prisat6 m ago

    For a normal man, who is yet to buy a home in the UK - Is this really …For a normal man, who is yet to buy a home in the UK - Is this really achievable ? [Quote]Maximum LTV is 60%[/Quote]Do people really read before voting hot ???For a 100k home, you need to have a 40k deposit.

    Think this is more aimed at remortgaged or movers rather than first time buyers - so yes, 40% deposit is quite normal
    prisat6 m ago

    For a normal man, who is yet to buy a home in the UK - Is this really …For a normal man, who is yet to buy a home in the UK - Is this really achievable ? [Quote]Maximum LTV is 60%[/Quote]Do people really read before voting hot ???For a 100k home, you need to have a 40k deposit.


    Nobody said all ftb's will be eligible for this product. To assume it is shows the naivety which suggests you have not yet had a mortgage.
    All property owners should be able to get to 60% LTV at some point down the road.
    honeststeveo8 m ago

    at some point down the road.




    Fair enough... I will continue to wait for that "some point".

    But you are right, i am not a owner of home and have no mortgage, just waiting for consolidation
    prisat9 m ago

    Fair enough... I will continue to wait for that "some point".But you are …Fair enough... I will continue to wait for that "some point".But you are right, i am not a owner of home and have no mortgage, just waiting for consolidation



    It is a difficult time for many to get onto the housing ladder and I empathize with that. But even looking at older generations very few would have been able to put down 40% deposit so it has long been an milestone most will have reached some time after starting a mortgage.

    You'd be best to focus your energy on being eligible for a mortgage at a higher LTV then one day you'll be able to get deals like this.
    Edited by: "honeststeveo" 15th Aug 2017
    ricey3 h, 39 m ago

    Misleading deal:"If you take a Fixed Rate Mortgage and you repay the whole …Misleading deal:"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."So you DO have an Early Repayment charge if you clear the balance, which isn't great. Probably better with Coventry BS who have no ERC




    "and you repay the whole of your mortgage during the Fixed period" - this will only be relevant for those who are able pay off their mortgage within five years...
    stiltsky3 h, 57 m ago

    anyone know how long you can delay this? current one ends in 5 months.



    Recently completed on a FD 10 year fixed rate deal at 2.49%.
    Once you get to the point of having the deal agreed in principle, they allow you to book the start date for up to 6 months in the future.
    I had an early redemption penalty on part of my previous mortgage and the FD advisor was the one to suggest delaying the start date of the new mortgage by a few moths to prevent having to pay the fee.
    Personal experience of the process is that it was fairly long winded, but not in the sense that they were asking for details of every outgoing, more that they are just ensuring that they are covering themselves that they aren't taking on risky debt, and reading back to the customer what they have advised they need the mortgage for and the rationale for the decisions they have made.
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