First Direct 10-year fixed mortgage 2.49%, no fee, up to 60% LTV
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First Direct 10-year fixed mortgage 2.49%, no fee, up to 60% LTV

46
Found 29th Jan
If you’ve got at least 40% deposit or equity and are keen to fix your mortgage rate for 10 years, First Direct has the following deal:
  • 10-year fix at 2.49%
  • Available up to 60% LTV
  • Fee saver (No arrangement fee, no booking fee and no standard valuation fee).

I’ve had a look around and other 10-year fixes with similar rates all come with a fee (e.g. Barclays has a 10-year fix at 2.39% but a £999 fee).

10-year fixes – pros and cons
The upside to a 10-year fix is that you’ll know what your mortgage payments will be for the next decade. If the base rate goes up, it won’t affect your mortgage.

So, it will be easy to budget and you also won’t have the hassle or remortgaging in a couple of years’ time (this can be a major headache if your circumstances have changed, you lose your job or your credit history deteriorates).

However, there are one or two downsides to 10-year fixes:

Firstly, if you want to leave the deal early (for example, to move house, remortgage to a better rate or pay off the whole loan) you’ll have to pay early repayment charges. With First Direct, 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.

Secondly, there’s also the possibility that better mortgage rates will come along and you’ll miss out on them because you’re tied into a 10-year deal.

How to compare mortgages
As always, it’s important to calculate the total cost of a mortgage deal. You can do this by adding together the total monthly payments over the fixed period (10 x 12 = 120 payments in this case) then adding any product fee minus any cashback.
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AnnaMak49 m ago

can't you just port your mortgage when moving house and no penalty as long …can't you just port your mortgage when moving house and no penalty as long as stay with same bank.Plus I doubt there will be a time when rates will be as low as they are now.


Yes, you can port with FD, rates are historically low, no brainer, FIX! Beware though, FD mortgage application is painful at present, their due diligence procedure means that you will have to divulge the size of your penis during the mortgage approval process, apparently this is to ensure you are telling the truth. Ladies have to answer similarly awkward questions regarding the last time their husband made them orgasm. Good luck everyone.
Very clear and concise description of 10 year fixed pros and cons. Heat just for that useful bit of information.

Is there a mortgage comparison site or did you search for rates from banks individually? Reason I asked is I randomly found a site (wont mention its name as not sure if it’s allowed) which showed top 10 mortgage rates from different banks but when you search these mortgage deals direct from the banks’ websites, the rates and fees aren’t the same (typically higher from banks’ own websites).

Just wondering if mortgage comparison sites are trust worthy? Your 2 cents would be greatly received. Thanks
46 Comments
Is this available to existing first direct mortgage holders?
can't you just port your mortgage when moving house and no penalty as long as stay with same bank.

Plus I doubt there will be a time when rates will be as low as they are now.
Edited by: "AnnaMak" 29th Jan
Very clear and concise description of 10 year fixed pros and cons. Heat just for that useful bit of information.

Is there a mortgage comparison site or did you search for rates from banks individually? Reason I asked is I randomly found a site (wont mention its name as not sure if it’s allowed) which showed top 10 mortgage rates from different banks but when you search these mortgage deals direct from the banks’ websites, the rates and fees aren’t the same (typically higher from banks’ own websites).

Just wondering if mortgage comparison sites are trust worthy? Your 2 cents would be greatly received. Thanks
Thanks for posting @writergirl74 . I've added an image to the thread for you.
If you need any advice on how to add images to your threads please feel free to drop me a PM and I can show you how it's done. Thanks.
AnnaMak49 m ago

can't you just port your mortgage when moving house and no penalty as long …can't you just port your mortgage when moving house and no penalty as long as stay with same bank.Plus I doubt there will be a time when rates will be as low as they are now.


Yes, you can port with FD, rates are historically low, no brainer, FIX! Beware though, FD mortgage application is painful at present, their due diligence procedure means that you will have to divulge the size of your penis during the mortgage approval process, apparently this is to ensure you are telling the truth. Ladies have to answer similarly awkward questions regarding the last time their husband made them orgasm. Good luck everyone.
AnnaMak1 h, 6 m ago

can't you just port your mortgage when moving house and no penalty as long …can't you just port your mortgage when moving house and no penalty as long as stay with same bank.Plus I doubt there will be a time when rates will be as low as they are now.



In theory, you can port the fixed rate. But, as it's a new mortgage, you will have to meet their lending criteria at the time. If you don't, you'll have to remortgage to another lender and pay the early redemption fee which is calculated on the original borrowing rather than what's outstanding. That's the big downside with long term fixed rates.
Sounds good, but if you tie yourself into that type of contract and your wanting to remortgage in the future it would be difficult as you would have to pay ERC (early repayment charge) before you can get another loan. thought il just let u know before considering this deal
Wouldn’t trust Hsbc and / First Direct as far as I could throw them..

Closed my account for no reason and caused absolute chaos because I was using it as a second account without a wage going in.. however they closed a joint account on back of this after stating that wasn’t affected. Causes all sorts of chaos with mortgages / direct debits

Banking ombudsman agreed and I got paid off
muffboy6 h, 36 m ago

Yes, you can port with FD, rates are historically low, no brainer, FIX! …Yes, you can port with FD, rates are historically low, no brainer, FIX! Beware though, FD mortgage application is painful at present, their due diligence procedure means that you will have to divulge the size of your penis during the mortgage approval process, apparently this is to ensure you are telling the truth. Ladies have to answer similarly awkward questions regarding the last time their husband made them orgasm. Good luck everyone.


Haha. I've had this mortgage for 6months, you're correct, the application process did involve speaking to somebody for about an hour while he quizzed me on every direct debit on my bank statement and listen to my explanation of the term I wanted, payment and why. I then had to go through this again when they dropped the rate by 0.5%

Unlimited overpayments allowed if it hasn't been mentioned yet.
think took us 2 hours plus 3 kids to apply not a fun combo butvnot too bad.
we ported and fixed but with a different bank
Was a ballache for us to apply too.
Got this rate back before the interest rate rises, was worried they'd increase them, seemingly not.
Great deal for 10 years and the certainly of fixed payments. However I'm of the opinion that 2 year no fee deals would work out cheaper over 10 years. The era of low interest rates seems here to stay, in 10 years time we'll be lucky/unlucky if the base rate is 2.5%.
Mars1047 m ago

Great deal for 10 years and the certainly of fixed payments. However I'm …Great deal for 10 years and the certainly of fixed payments. However I'm of the opinion that 2 year no fee deals would work out cheaper over 10 years. The era of low interest rates seems here to stay, in 10 years time we'll be lucky/unlucky if the base rate is 2.5%.


Banking on cheap rates sticking around seems a very high risk punt!!

This is a very good deal!

Avoid 2 year deals, if rates rise then you'd kick yourself at predicting a sea-change in historical cycles.
2.39% with a £999 fee will surely be cheaper for the majority of people? Not to mention you can usually roll the fee into the monthly payments, so it's not as if you need it upfront.
commenter1435 m ago

2.39% with a £999 fee will surely be cheaper for the majority of people? …2.39% with a £999 fee will surely be cheaper for the majority of people? Not to mention you can usually roll the fee into the monthly payments, so it's not as if you need it upfront.


Everyone needs to do the sums themselves to be sure, but generally I'd agree. Especially over 10 years, which will dilute the fee a lot.

Normally the higher the amount borrowed, the more worthwhile it's going to be to pay higher fees to get a lower rate. And obviously vice versa, so if you're not borrowing much, the no fee option might be better.
I obtained a Barclays 80% L/v 10-year fix at 2.7% last year and had the £999 fee added onto the mortgage.
Decent long-term guaranteed rate, but after being stung in the past I'd be reluctant to sign up to anything for this long again - you never know what's going to happen and it's incredibly expensive to get out of.

Furthermore, I feel that it's unlikely we're going to see the interest rates of yesteryear anytime soon, and clearly the banks agree if they're offering these rates.

... for those reasons, I'm out.
akajay0729 m ago

Decent long-term guaranteed rate, but after being stung in the past I'd be …Decent long-term guaranteed rate, but after being stung in the past I'd be reluctant to sign up to anything for this long again - you never know what's going to happen and it's incredibly expensive to get out of.Furthermore, I feel that it's unlikely we're going to see the interest rates of yesteryear anytime soon, and clearly the banks agree if they're offering these rates.... for those reasons, I'm out.


Agree. No way would banks be offering these long low rate deals if they had one tiny little inkling that rates are going to rise any time soon.
It's down to the individual, 2.49% is a pretty good rate no matter how you look at it.
I think I would rather pay a fraction more knowing that my payments are going to be fixed for the next 10yrs. If you believe these rates will remain this low for the next 10yrs, then please buy me a lottery ticket.

For myself I would only be looking at £43 difference between a 2yr tracker and a 10yr fixed, so it's a no brainer in my book.

Via Nationwide
2yr tracker £951 a month 1.69%
10yr fixed £994 a month 2.59%
Yesgo12 h, 17 m ago

Very clear and concise description of 10 year fixed pros and cons. Heat …Very clear and concise description of 10 year fixed pros and cons. Heat just for that useful bit of information. Is there a mortgage comparison site or did you search for rates from banks individually? Reason I asked is I randomly found a site (wont mention its name as not sure if it’s allowed) which showed top 10 mortgage rates from different banks but when you search these mortgage deals direct from the banks’ websites, the rates and fees aren’t the same (typically higher from banks’ own websites). Just wondering if mortgage comparison sites are trust worthy? Your 2 cents would be greatly received. Thanks


Best "Comparison Site" is London and Country, they are an online mortgage broker but you can see the rates comparison without actually using them, I used it to find the best deal and then went direct. Link
I took this product out in late December. It was relatively painless to apply for, and I was already a current account holder. I switched from Santander. Enact were the conveyancing solicitors and they a little hard to get hold of but efficient. I’m hoping to stay in the same house for ten years.
Good deal if you plan to stay put for 10 years.

But for those who are more mobile and may move jobs, move house etc.. it does tie you in with penalties.

Some have said that you can port your mortgage to a new house, but what if they dont approve the new mortgage for whatever reason, then you cant move without paying a penalty.

If your circumstances change e.g you lose your job, or you just change jobs etc... youre tied in.

The penalty to end the deal is effectively the early repayment charge of 2% which to be fair isnt the end of the world, but thats the trade off.
I wasn't expecting the Spanish Inquisition wither when i applied either... but thankfully 12 months on i can now sit down again
Op mentions Barclays 2.39% (with £999 fee) - you can work out which is better for you (assuming you have the luxury of £999 spare) as follows;

£999 / 10y = £99.9 p.a.
2.49% - 2.39% = 0.1%
£99.9 / 0.1% = £99,900 where the fee / fee free versions break even - i.e. the figure where the 0.1% figure is equal to £999 over the 10 years.

On that kind of term, effectively any mortgage balance above £100k you should (if possible) go for the fee included option, as the savings on interest will more than cover the £999 fee over the 12m. Similarly, if your mortgage has below £100k left (lucky sod) then this fee free deal should work in your favour, regardless of having £999 to hand or not.

Note - I don't know what Barclay's breakage fees are, so please do compare all of the kind of information Op has provided above before going ahead! As a rule of thumb I find most fee vs fee free comparisons tend to break even around that £100k mark, even from the same lender, but you can substitute different terms / fees / rates in to the calculation above to test.

Voted hot.
thorpe1 m ago

Op mentions Barclays 2.39% (with £999 fee) - you can work out which is …Op mentions Barclays 2.39% (with £999 fee) - you can work out which is better for you (assuming you have the luxury of £999 spare) as follows;£999 / 10y = £99.9 p.a.2.49% - 2.39% = 0.1%£99.9 / 0.1% = £99,900 where the fee / fee free versions break even - i.e. the figure where the 0.1% figure is equal to £999 over the 10 years.On that kind of term, effectively any mortgage balance above £100k you should (if possible) go for the fee included option, as the savings on interest will more than cover the £999 fee over the 12m. Similarly, if your mortgage has below £100k left (lucky sod) then this fee free deal should work in your favour, regardless of having £999 to hand or not.Note - I don't know what Barclay's breakage fees are, so please do compare all of the kind of information Op has provided above before going ahead! As a rule of thumb I find most fee vs fee free comparisons tend to break even around that £100k mark, even from the same lender, but you can substitute different terms / fees / rates in to the calculation above to test.Voted hot.


You can often roll the fee into the mortgage so you pay it over the 10 years.
sprite1275943 h, 25 m ago

Agree. No way would banks be offering these long low rate deals if they …Agree. No way would banks be offering these long low rate deals if they had one tiny little inkling that rates are going to rise any time soon.



True, but this assumes the banks have a better idea of what is going on than the rest of us. You could have used the same argument to say the banks wouldn't have lent mortgages out to a bunch of no-marks if they thought they would default back in the mid-noughties, but they still did.
Edited by: "JezB" 30th Jan
JezB29 m ago

True, but this assumes the banks have a better idea of what is going on …True, but this assumes the banks have a better idea of what is going on than the rest of us. You could have used the same argument to say the banks wouldn't have lent mortgages out to a bunch of no-marks if they thought they would default back in the mid-noughties, but they still did.


They still did because they repackaged these debts, sold these repackaged debts and made loadsa money. Banks know what they are doing and they insure/hedge their risks.
markwigg3 h, 3 m ago

Best "Comparison Site" is London and Country, they are an online mortgage …Best "Comparison Site" is London and Country, they are an online mortgage broker but you can see the rates comparison without actually using them, I used it to find the best deal and then went direct. Link


Thanks just what I was looking. OP heat for the next research and detail
sprite1275945 h, 10 m ago

Agree. No way would banks be offering these long low rate deals if they …Agree. No way would banks be offering these long low rate deals if they had one tiny little inkling that rates are going to rise any time soon.


you need to understand very little about how mortgage portfolio securities work to understand that there is a variety of investors who are happy to lock in an income for 10 years. Banks are offering 2 yr 3 yr 4 yr 5 yr 10yr fixes because there is appetite for the bonds once they are bundled up.
dodgymix9 h, 19 m ago

Wouldn’t trust Hsbc and / First Direct as far as I could throw them.. C …Wouldn’t trust Hsbc and / First Direct as far as I could throw them.. Closed my account for no reason and caused absolute chaos because I was using it as a second account without a wage going in.. however they closed a joint account on back of this after stating that wasn’t affected. Causes all sorts of chaos with mortgages / direct debitsBanking ombudsman agreed and I got paid off


That's certainly strange! I've never had an issue with them and I have multiple current accounts with them! I've had a generally good experience personally.
Edited by: "mephestic" 30th Jan
davewave7 h, 27 m ago

Banking on cheap rates sticking around seems a very high risk punt!!This …Banking on cheap rates sticking around seems a very high risk punt!!This is a very good deal!Avoid 2 year deals, if rates rise then you'd kick yourself at predicting a sea-change in historical cycles.


Totally agree. My first interest only mortgage (in 1990) the interest rate on it was 15%. Can you imagine that now? If you can't then you might consider the fix. You only need something like e.g. a change of government, a loss of confidence in sterling, a flight of foreign capital and the inevitable hike in interest rates to keep up an indebted economy reliant on foreign cash to keep buying our Treasury bonds to start really ratcheting up BoE rates. Or a war, or an oil price spike, or any other unexpected event.

Even economists can't agree what will happen next.....

Just saying - the era of low interest rates won't be with us always.
This looks like a great deal. I fell into the trap of a long term fix at 3.24% 4 years ago with Post Office (Bank of Ireland) and I stlil have another year left until I can move. By which time these rates may very well be consigned to the history books.

The worst thing is, it's a 5% fee to pay it off early and I wanted to move abroad. But that's a lot to lose for the sake of 12 months now. Was a bit of a con as most Bank of Ireland mortgages lower the early settlement fee by 1% each year but mine is 5% right up until the day it reaches 5 years.

Lesson learnt - don't try to be a smart arse and do it yourself. I'd like to think I'm pretty shrewd but i got seduced by the security of a long term fix but could have saved loads. But you never know I guess...
pied_piper1 h, 37 m ago

They still did because they repackaged these debts, sold these repackaged …They still did because they repackaged these debts, sold these repackaged debts and made loadsa money. Banks know what they are doing and they insure/hedge their risks.



So we bailed them all out because they were doing so well, then?
I'm a bit long in the tooth now mortgage-wise, but in the nineties interest rates would flap up and down like a whore's drawers. Your mate might be on a fix when rates were going down and we would all laugh at him, conversely another mate on a fix would laugh at those of us on variable rates when the base rate took a hike. Most fixes were for a couple of years. It was almost inconceivable to get a 10 year fix as rates were too variable.

Now it may be that banks have a crystal ball and can predict the future but I rather doubt it. They don't really need to as you are committing to the fix for 10 years and the deal is based on the price of debt now. In an era of low interest rates they can buy 10 year Treasury bonds at less than 2% and you effectively service that debt. The difference between that treasury bond and your mortgage fix is their profit. It is expensive to wriggle out of a 10 year mortgage because you agreed to the calculation at a point in time.

The downside to a 10 year fix at 2.49 is that variable rates may go a little lower and who knows you may be able to get a fix later at 2%. However it strikes me that the potential for interest rates to go significantly higher is on balance much more of a risk than the potential to lose a little if they don't. A 0.5% move downwards in base rates to 0% is a theoretical 20% savings 'hit' on monthly mortgage payments if you fix at 2.5% now. A move to base rate 5.5% is a 300% actual hit on repayments. (6% - 0.5% + 2.5%) / 2.5%. Sorry if I am oversimplifying. Base rate 5.5% is not the limit either. As I said earlier, my first mortgage rate was 15% in 1990.

My current offset mortgage with First Direct is 1% above base and that suits me nicely due to personal circumstances. Would I fix now? No, as my circumstances mean my mortgage is more like an overdraft. Would I have fixed at age 25? Yes, as long as I could move the mortgage with me to the next house. I could not have taken a 300% change in mortgage repayments. My entire salary went on the mortgage and the wife's paid the bills.

Interest rates will change, just a question of when IMO.
Great deal and the benefit of unlimited overpayments!
Worst application process I’ve ever experienced. Their excuse -“we run a tight ship”!. I’d recommend TSB with their 2.34/2.39 10yr rate.
AnnaMak22 h, 30 m ago

can't you just port your mortgage when moving house and no penalty as long …can't you just port your mortgage when moving house and no penalty as long as stay with same bank.Plus I doubt there will be a time when rates will be as low as they are now.


Beware if trying to port with your existing lender. They know you are potentially tied to them and so you are unlikely to have access to the market. They will know this. So access to better rate mortgages from other lenders will be something to consider if you are effectively being tied to your existing lender.
In addition to this, beware the ‘new bit’ having a fixed period that is not synced with the ‘old bit’ again effectively further tying you in and complicating things.
Banks love those who try to move house during the fixed rate period... read ‘see you coming’.
dannythemusicman15 m ago

Beware if trying to port with your existing lender. They know you are …Beware if trying to port with your existing lender. They know you are potentially tied to them and so you are unlikely to have access to the market. They will know this. So access to better rate mortgages from other lenders will be something to consider if you are effectively being tied to your existing lender. In addition to this, beware the ‘new bit’ having a fixed period that is not synced with the ‘old bit’ again effectively further tying you in and complicating things. Banks love those who try to move house during the fixed rate period... read ‘see you coming’.


we already ported and moved couple of months ago.
previous fixed deal run out or were within period cam switch few weeks after moving. both mortgages are sync, got loyalty payment for both mortgages and really good rate and lower than we had before
sprite12759411 h, 40 m ago

Agree. No way would banks be offering these long low rate deals if they …Agree. No way would banks be offering these long low rate deals if they had one tiny little inkling that rates are going to rise any time soon.


Well they can't go much down either so there's more of a risk if ur not fixing it know the rates will be increasing at some point in next couple of years in my opinion with all this Brexit nonsensical going on
That’s brill, I guess my comment is aimed at those who are still in the fixed period but attracted to moving house.
I see so many people use financial advisers these days rather than get to understand how this all works and they waste £,000s... porting with existing lenders is one area where people often get shafted.
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