5 Year Fixed Rate Mortgage 60% LTV: First Direct 2.08% ZERO SIGN UP FEE / PORTABLE
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5 Year Fixed Rate Mortgage 60% LTV: First Direct 2.08% ZERO SIGN UP FEE / PORTABLE

50
Found 22nd Jul 2016
Early Repayment Charges: 3% in the first year or 2% in any subsequent year.

Unlimited over-payments are allowed but if you pay it off in full before the end of the 5-year term, you'll have the above Early Repayment Charges.

I'm in a quandary because I'm currently on their lifetime tracker at 1.79% which is also an excellent rate. However, a 0.29% premium for a 5-year fix is quite good (increasing to 0.54% if BOE drop rates next month).
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Personally I'd snap it up. While the next move will most likely be down, Brexit means all bets are of off for interest rates over the next few years, and particularly in the run up to and aftermath of leaving. There's every chance rates will go through the roof and 0.29% is a trivial price to pay for a little bit of security during the uncertainty.
Would be interesting to know what pay off "in full" means - their website doesn't clarify. i.e. if I pay off all except £1 would that be full?

(Not that I am in a position to manage that in 5 years right now)
DanB89

Would be interesting to know what pay off "in full" means - their website … Would be interesting to know what pay off "in full" means - their website doesn't clarify. i.e. if I pay off all except £1 would that be full?(Not that I am in a position to manage that in 5 years right now)



Yes that is correct. could pay all but £100 for example and split that over the remaining 3 years etc.
DanB89

Would be interesting to know what pay off "in full" means - their website … Would be interesting to know what pay off "in full" means - their website doesn't clarify. i.e. if I pay off all except £1 would that be full?(Not that I am in a position to manage that in 5 years right now)



​That wouldn't be paid off in full but the reality is that anyone in a position to overpay in full is probably best leaving a balance well above £1 because their money would earn more than 2.08% elsewhere
At this low rate of course if you were in a position to nearly pay it off you'd be better off sticking the money in accounts earning more than 2.08%, basically being paid to have your mortgage.
bulletproof1979

Personally I'd snap it up. While the next move will most likely be down, … Personally I'd snap it up. While the next move will most likely be down, Brexit means all bets are of off for interest rates over the next few years, and particularly in the run up to and aftermath of leaving. There's every chance rates will go through the roof and 0.29% is a trivial price to pay for a little bit of security during the uncertainty.



You think there's a chance interest rates will go through the roof? Interested to know why you think so - I had assumed for want of propping up the economy during a state of uncertainty, the bank would've wanted the free flow of cash and they'd achieve that by keeping the interest rates low + plenty of QE...
Personaly I'd jump on it as I'm currently on 2.5% with Coventry Building Socity.

However, if I was on 1.79% like you I'd stay there. The base interest rate is expected to go down to 0.25. Follow Carney (the Bank of England boss) as he hinted it will happen sooner or later.
refaey

However, if I was on 1.79% like you I'd stay there. The base interest … However, if I was on 1.79% like you I'd stay there. The base interest rate is expected to go down to 0.25. Follow Carney (the Bank of England boss) as he hinted it will happen sooner or later.



That's my thoughts. I'll be keeping a close eye on the rates of 5 year bonds but, based upon the current pricing, it looks like they expect a BOE base rate of 0.25% for the next 2-3 years.

Based upon the 10-year bonds, it looks like they expect rate rises, when they eventually come to pass, to occur very slowly.

Sure, there's a chance I could save a little by opting for the fix, but then I have the follow-on rate to worry about. One cannot overestimate the convenience of a lifetime tracker. This is especially true if I was to miss a payment on a credit card by accident during the 5 years, causing me to lose any chance of remortgaging to any of the lenders that usually top the best buy tables.

Your text here
marathonic

​That wouldn't be paid off in full but the reality is that anyone in a p … ​That wouldn't be paid off in full but the reality is that anyone in a position to overpay in full is probably best leaving a balance well above £1 because their money would earn more than 2.08% elsewhere



Any suggestion about where to get 2.08% on your savings ? Best ISA seems about 1.3%
naomipunkclan

Any suggestion about where to get 2.08% on your savings ? Best ISA seems … Any suggestion about where to get 2.08% on your savings ? Best ISA seems about 1.3%



Lots of current accounts and regular savers pay more than 2.08%. It's a long time since ISA's were the best place to put cash - and even more so now with the £1000 tax free allowance on interest earned.

Agree with the other guy, you'd be mental to leave your lifetime tracker anytime soon. Use the savings to pay down the balance quicker which will offset the hit on any rate rises later on.

I've just renewed on a fixed deal for 2 years with the Woolwich at 1.79% (fee free), the premium for longer term fixed deals just aren't worth it at the moment.

marathonic

That's my thoughts. I'll be keeping a close eye on the rates of 5 year … That's my thoughts. I'll be keeping a close eye on the rates of 5 year bonds but, based upon the current pricing, it looks like they expect a BOE base rate of 0.25% for the next 2-3 years. Based upon the 10-year bonds, it looks like they expect rate rises, when they eventually come to pass, to occur very slowly.Sure, there's a chance I could save a little by opting for the fix, but then I have the follow-on rate to worry about. One cannot overestimate the convenience of a lifetime tracker. This is especially true if I was to miss a payment on a credit card by accident during the 5 years, causing me to lose any chance of remortgaging to any of the lenders that usually top the best buy tables.Your text here





Edited by: "mikeyp" 22nd Jul 2016
marathonic

Lots of current accounts and regular savers pay more than 2.08%. It's a … Lots of current accounts and regular savers pay more than 2.08%. It's a long time since ISA's were the best place to put cash - and even more so now with the £1000 tax free allowance on interest earned.



These are usually limited incentives such as 5% on balance up to £2500 (Nationwide) or or 3% on balance up to £20k (Santander). Beyond that your next best place is pay down the mortgage or stocks and shares if you like risk
If you are paying a lump sum off your mortgage 5k+ etc....where can you get 2.08%?
FTSE all share tracker currently pays approx 3% in dividends each year. Though your capital may go down it can also go up. Personally I like risk so this is what I do. When my 2 year deal is up, if I can't negotiate a deal then I will sell and pay it down. That's my plan anyway.
bulletproof1979

Personally I'd snap it up. While the next move will most likely be down, … Personally I'd snap it up. While the next move will most likely be down, Brexit means all bets are of off for interest rates over the next few years, and particularly in the run up to and aftermath of leaving. There's every chance rates will go through the roof and 0.29% is a trivial price to pay for a little bit of security during the uncertainty.




Oh my aching sides.
Im after a mortgage as a first time buyer would this be best out there?>
Ammo71

Im after a mortgage as a first time buyer would this be best out there?>



None of us know without knowing your full personal and financial circumstances. For a start, do you have a 40% deposit?

If you don't already know about mortgages inside out already, I'd seriously encourage you get some independent advice.
djc0367

None of us know without knowing your full personal and financial … None of us know without knowing your full personal and financial circumstances. For a start, do you have a 40% deposit?If you don't already know about mortgages inside out already, I'd seriously encourage you get some independent advice.



+1

First port of call is to head over to moneysavingexpert.com. Lots of free material there to help you
The annoying thing about HSBC (and the other big 3) is that they do not take stipend as a form of income. So for someone like me who is on an academic fellowship at an university it is a no-go.
Thanks for the listing
.............................
Compared to lenders like Santander First-Direct are cherry-pickers - and if they turn you down don't think you won't get a mortgage at a good rate elsewhere.
bulletproof1979

Personally I'd snap it up. While the next move will most likely be down, … Personally I'd snap it up. While the next move will most likely be down, Brexit means all bets are of off for interest rates over the next few years, and particularly in the run up to and aftermath of leaving. There's every chance rates will go through the roof and 0.29% is a trivial price to pay for a little bit of security during the uncertainty.


Do you work for First Direct?
75% LTV 2.18% product is also fee-free with first direct
Edited by: "naz400r" 22nd Jul 2016
How strict are they about the % usually? I'm probably closer to 65% but in a sought after area so wouldn't be a massive surprise if the value would actually mean 60% ltv
They can do a valuation as part of the application, fees may or may not apply depending on what product you choose.

I know because I just booked in an application.
ymmf

The annoying thing about HSBC (and the other big 3) is that they do not … The annoying thing about HSBC (and the other big 3) is that they do not take stipend as a form of income. So for someone like me who is on an academic fellowship at an university it is a no-go.



Pretty simple mate, you're not an employee.
badasschris

How strict are they about the % usually? I'm probably closer to 65% but … How strict are they about the % usually? I'm probably closer to 65% but in a sought after area so wouldn't be a massive surprise if the value would actually mean 60% ltv



Strict. As in if you're not at 60% then you can't get it, simples.

Should add to this that the main deciding factor will be your property price, as it is this and your outstanding that will make the LTV.

OP Personally I'd stick on the tracker unless you only have 5 years left on your mortgage.
Edited by: "vod" 22nd Jul 2016
Shine600

Compared to lenders like Santander First-Direct are cherry-pickers - and … Compared to lenders like Santander First-Direct are cherry-pickers - and if they turn you down don't think you won't get a mortgage at a good rate elsewhere.



I agree. I've had a current account with First Direct for 6 years and I wanted to change my mortgage to them. LTV of under 50% and income multiple of 2.5x but they still turned me down.
This is within a couple of pounds (on the monthly repayments) of what you can get from the Nationwide if you're an existing Nationwide customer... A good deal though to be sure.

We're reducing our mortgage term to 6 years and taking a 5 year fixed deal as soon we can. Better to get a good rate for 5 years, than wait around for a great rate and possibly have the rug pulled out from under you. We've been on a rate of 2.49% the last three years and we thought that was good, and to now have the opportunity to fix it for 5 years at an even lower rate is amazing.
Edited by: "a_user" 22nd Jul 2016
Shame not offset!
bulletproof1979

At this low rate of course if you were in a position to nearly pay it off … At this low rate of course if you were in a position to nearly pay it off you'd be better off sticking the money in accounts earning more than 2.08%, basically being paid to have your mortgage.



Liked by accident sorry. It makes sense but would mean if you ever had to apply for something that was means tested, in some gases your extra capital sitting there in those accounts would be counted and the equity gnored.

Civil claims for legal aid for example, your savings would be found to be over 8k so you wouldn't get any.
Edited by: "supermann" 23rd Jul 2016
ymmf

The annoying thing about HSBC (and the other big 3) is that they do not … The annoying thing about HSBC (and the other big 3) is that they do not take stipend as a form of income. So for someone like me who is on an academic fellowship at an university it is a no-go.



How utterly ridiculous is that. Unlike a salary it's tax free too.
supermann

Liked by accident sorry. It makes sense but would mean if you ever had to … Liked by accident sorry. It makes sense but would mean if you ever had to apply for something that was means tested, in some gases your extra capital sitting there in those accounts would be counted and the equity gnored. Civil claims for legal aid for example, your savings would be found to be over 8k so you wouldn't get any.



​I don't think I'll be basing any of my financial decisions on the possibility of future receipt of means tested benefits. I prefer to be in as much control of my finances as possible.
to all my friends simple advice.. always please calculate your mortgage at 6% for 30 year period.. it will never be 2% in next 30 years
heat
Fab deal. Unfortunately not for me as my daughter is living in my house not me and has to be your main residence
marathonic

​I don't think I'll be basing any of my financial decisions on the p … ​I don't think I'll be basing any of my financial decisions on the possibility of future receipt of means tested benefits. I prefer to be in as much control of my finances as possible.



Fair enough but some of us have to sadly rely on them and keeping 10s of thousands of pounds of money that's not technically ours is just not a good idea. I share your aims I swear I don't want to be reliant on them and that's one reason why I pay down my mortgage.
supermann

Fair enough but some of us have to sadly rely on them and keeping 10s of … Fair enough but some of us have to sadly rely on them and keeping 10s of thousands of pounds of money that's not technically ours is just not a good idea. I share your aims I swear I don't want to be reliant on them and that's one reason why I pay down my mortgage.



​Not sure you've thought this through. If you have a flexible mortgage such as this the full balance is instantly available to you for the term (meaning any money "paid off" is only in name - it's really just sitting in your mortgage account). Similarly, you can, all but, pay it off at a moments notice (assuming you have the funds elsewhere).
getknk

to all my friends simple advice.. always please calculate your mortgage … to all my friends simple advice.. always please calculate your mortgage at 6% for 30 year period.. it will never be 2% in next 30 years



The world is going into a very different era now than the previous 30 years, so while it may seem to prudent to base the average of the next 30 years on interest rates over the previous historic rates, I would think that in reality they will have little relevance.

Except for knowing that historic rates were once higher, there is little logical reason that over the medium term, based on the current country's and world economic outlook, that rates would be heading up to that level again.

Admittedly there wouldn't be any harm in seeing what you'd be paying on your mortgage at 6%, but on the flip side it may also be worth considering one's position if the BoE rate dropped to negative 2 percent and what you would be paying then (or overpaying if you were to take out a 10year fixed now).
Edited by: "jambone" 28th Jul 2016
I'm hoping they drop this rate after the base rate drop, one can hope!
Edited by: "Rob_B" 8th Aug 2016
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