First Direct, 10-year fixed mortgage, 2.69%, no fee
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First Direct, 10-year fixed mortgage, 2.69%, no fee

52
Found 19th Dec 2017
Hey… another 10-year fixed rate mortgage for people who want to lock-in a rate for a decade to consider:

First Direct is offering:

  • 10-year fix at 2.69%
  • No fee
  • Max LTV 75%

Why I like this product
The rate on this isn’t quite as competitive as TSB’s 10-year fix I posted the other day (2.34%). However, the First Direct deal has a couple of advantages: Firstly, no fee (TSB is £995) and secondly it’s available up to 75% LTV (TSB is 60%).

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.
Community Updates
This mortgage product allows unlimited overpayments. A great feature for a fixed rate mortgage.
First Direct Deals

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Top comments
Not getting a mortgage but looking at this post got me a deer
32830701-LG5lJ.jpg
Be prepared to be rejected for no justifiable reason
mrb19741 h, 22 m ago

Hsbc we’re doing one a few months back. Might be worth a look.


"Hsbc we’re doing......"

An apostrophe catastrophe.
Edited by: "qbs" 20th Dec 2017
I took this deal 2 months ago albeit the rate was 5bps lower at 2.64. Don’t want it start until April due to existing exit penalties (erc’s) expiring. Would add the other benefit to this which is worth factoring in is that you overpay without restriction and if for any reason you wanted to exit the mortgage during the fixed term the erc’s are low in comparison to other providers... 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. Would also add the processing has been decent too and you can scan payslips and ID and submit via smartphone too...
52 Comments
nice deal.......if you can get it
Nice deal
Be prepared to be rejected for no justifiable reason
Kristcobain37 s ago

Be prepared to be rejected for no justifiable reason


Exactly the same here. No reasoning at all
I took this deal 2 months ago albeit the rate was 5bps lower at 2.64. Don’t want it start until April due to existing exit penalties (erc’s) expiring. Would add the other benefit to this which is worth factoring in is that you overpay without restriction and if for any reason you wanted to exit the mortgage during the fixed term the erc’s are low in comparison to other providers... 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. Would also add the processing has been decent too and you can scan payslips and ID and submit via smartphone too...
This is first direct. Unless you pay 99% of your mortgage up front you have no chance of the 2.69%, absolutely no chance
25% ltv max doesnt appeal to first time buyers
Not getting a mortgage but looking at this post got me a deer
32830701-LG5lJ.jpg
Hsbc we’re doing one a few months back. Might be worth a look.
chantalle14 m ago

Not getting a mortgage but looking at this post got me a deer Not getting a mortgage but looking at this post got me a deer [Image]

I am happy for you.
mrb19741 h, 22 m ago

Hsbc we’re doing one a few months back. Might be worth a look.


"Hsbc we’re doing......"

An apostrophe catastrophe.
Edited by: "qbs" 20th Dec 2017
Hawt from me. 75% LTV makes it worth a deal.
Is this for first time buyers only or anyone? What about if you're buying to let?
Does anyone know if this mortgage would be available for those using Help To Buy? About to apply through a broker for first time mortgage and weighing up 10% deposit or the Help To Buy option.
Cheers
pablotay859 h, 19 m ago

Exactly the same here. No reasoning at all


Since when have lenders ever given a "reason" for rejecting you credit? They have their criteria, you fail to meet it. There are plenty of articles about checking and improving your credit score; start there. If that's all OK, then you probably just fail the affordability check - try to borrow less by increasing your LTV and reduce your outgoings.
robgoode7 h, 14 m ago

Does anyone know if this mortgage would be available for those using Help …Does anyone know if this mortgage would be available for those using Help To Buy? About to apply through a broker for first time mortgage and weighing up 10% deposit or the Help To Buy option.


My guess - probably not. Even if they don't specifically exclude it, it will still go against you on the general affordability check. They want to ensure that you have substantial capital at risk too, or there's no real incentive for you to keep up repayments.

Also, just noticed you said 10% deposit. This mortgage has a max LTV of 75%, which means you'd need a 25% deposit.

Lenders want to know you can afford it on your own, if you need help from somewhere else they just see it as you reducing your deposit. When I bought my first home I used a 15% deposit contribution scheme from Barratt, only 2 lenders would provide a mortgage on it; Nationwide and Halifax. Nationwide have been absolutely amazing though, they offer great retention rates when you switch products, so I've always been on a market leading rate. I compare against the market every time, and they come out top - even if they may not have been the very best for the 1st fixed period.

My advice would be to fix for a shorter amount of time if you're a first time buyer. You will likely be given a high rate because of your high LTV, and your range of products will be reduced due to use of HTB. If you fix for a short period, then hopefully you can raise more capital for re-mortgaging and lower that all important LTV, giving access to the better rates. Looking back, this was the mistake I made... I fixed for 5 years because I was afraid of a rate change, which effectively meant I ended up paying a higher rate than necessary for a few years. If I'd have fixed for 2 years, I could have lowered my LTV earlier and saved more over the same term.

Remember. every time you make a payment (assuming you're not paying interest-only) you're reducing your LTV slightly, and also your house value is [likely] increasing (also reducing LTV). So the sooner you can re-mortgage, the sooner you benefit from the better LTV. Note; you will normally need to cross some threshold to get a better rate (e.g. 80%, 75%, 70%, 65%).

Also, compare the market yourself - don't just trust your broker - especially if they are working on commission only! They will only offer a subset of the market! Mortgages aren't as complicated as some people think, and from my experience the brokers couldn't get any better rates than going direct to the lenders.
Edited by: "jazlabs" 20th Dec 2017
saraye5 h, 47 m ago

Is this for first time buyers only or anyone? What about if you're buying …Is this for first time buyers only or anyone? What about if you're buying to let?


I'm surprised that if you are in the market for a "buy to let", then you are asking this question. However -

Just read the terms, you normally need a very low LTV for a buy to let mortgage.

And no, it's not just for first time buyers. Not many first time buyers would have a 25% deposit. In fact, I'm not sure I know of ANY mortgage that is only for first time buyers... There may be some targeted at them (i.e. those that allow help to buy schemes), but why would they limit their product to that market? A "first time buyer" mortgage, would likely just be one with a higher rate.
mrb19749 h, 8 m ago

Hsbc we’re doing one a few months back. Might be worth a look.


Not surprising seeing as they are virtually the same bank!
Note that "no fee" is not really a huge "feature" of a 75% LTV fixed term mortgage. Often, paying the additional £900 fee will reduce what you pay over the fixed period.

Obviously different if you're on a product with no exit penalty (some trackers) and anticipate you may change product within the term.

"No fee" means the fee is built into the rate.
Edited by: "jazlabs" 20th Dec 2017
jpdscfc10 h, 31 m ago

I took this deal 2 months ago albeit the rate was 5bps lower at 2.64. …I took this deal 2 months ago albeit the rate was 5bps lower at 2.64. Don’t want it start until April due to existing exit penalties (erc’s) expiring. Would add the other benefit to this which is worth factoring in is that you overpay without restriction and if for any reason you wanted to exit the mortgage during the fixed term the erc’s are low in comparison to other providers... 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. Would also add the processing has been decent too and you can scan payslips and ID and submit via smartphone too...


You mentioned you don't want yours to start until April ... Can you specify when you would like it to start (within reason!)
My mortgage renewal is due in July ... Don't see them waiting that long for me to be honest.... :-/
chantalle10 h, 13 m ago

Not getting a mortgage but looking at this post got me a deer Not getting a mortgage but looking at this post got me a deer [Image]


If you caught a reasonable collection you *should* consider getting a mortgage and building a shed for them!
Great rate with reasonable LTV limit.
I'd be happy to fix for 10 years at that rate.
I've just moved over to First Direct on a 5 year fixed. It took ages to sort out and I seemed to be the one chasing all the time.
jonnyclewlow1 h, 10 m ago

You mentioned you don't want yours to start until April ... Can you …You mentioned you don't want yours to start until April ... Can you specify when you would like it to start (within reason!)My mortgage renewal is due in July ... Don't see them waiting that long for me to be honest.... :-/


6 months to complete
Echo the comment about relying on brokers. My employer offers mortgage workshops, which I used when sorting my own deal earlier this year. I’d already done a search of my own on one of the comparison sites and was surprised (although I probably shouldn’t have been) when this professional brokerage company proceeded to offer me “exclusive” deals in exactly the same order as the comparison site had presented them.

I ended up remortgaging with Nationwide, who were absolutely brilliant. It’s really not that difficult to sort out on your own.
tony4256 m ago

Echo the comment about relying on brokers. My employer offers mortgage …Echo the comment about relying on brokers. My employer offers mortgage workshops, which I used when sorting my own deal earlier this year. I’d already done a search of my own on one of the comparison sites and was surprised (although I probably shouldn’t have been) when this professional brokerage company proceeded to offer me “exclusive” deals in exactly the same order as the comparison site had presented them.I ended up remortgaging with Nationwide, who were absolutely brilliant. It’s really not that difficult to sort out on your own.


Totally agree. Nationwide also offered £100 cashback on product switching earlier this year - as well as the exclusive rates! Shows they care about existing customers rather than just getting new ones. Think that deal may still be active.

Nationwide have been nothing but brilliant since the day I walked into the branch to get my first mortgage.
jpdscfc14 h, 15 m ago

I took this deal 2 months ago albeit the rate was 5bps lower at 2.64. …I took this deal 2 months ago albeit the rate was 5bps lower at 2.64. Don’t want it start until April due to existing exit penalties (erc’s) expiring. Would add the other benefit to this which is worth factoring in is that you overpay without restriction and if for any reason you wanted to exit the mortgage during the fixed term the erc’s are low in comparison to other providers... 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. Would also add the processing has been decent too and you can scan payslips and ID and submit via smartphone too...


Hi, can you ask for these offers to start later? I also have exit penalties

Thanks
jonnyclewlow3 h, 58 m ago

You mentioned you don't want yours to start until April ... Can you …You mentioned you don't want yours to start until April ... Can you specify when you would like it to start (within reason!)My mortgage renewal is due in July ... Don't see them waiting that long for me to be honest.... :-/


I took this 10 year fixed earlier this year . From start to Finnish it took four long months but I was getting divorced so this slowed things up with transfer of equity etc .
FD are extremely strict though and want to know where every pound you have come from and your exact outgoings . There is an awful amount of paperwork too but it's worth the hassle as they are a quality bank
bisoner3 h, 9 m ago

I've just moved over to First Direct on a 5 year fixed. It took ages to …I've just moved over to First Direct on a 5 year fixed. It took ages to sort out and I seemed to be the one chasing all the time.


Same
rcfc8745 m ago

Hi, can you ask for these offers to start later? I also have exit …Hi, can you ask for these offers to start later? I also have exit penaltiesThanks


As noted above. From point of applying and securing the rate the offer is valid for 6 months. You can specify your completion date.
jpdscfc15 h, 22 m ago

I took this deal 2 months ago albeit the rate was 5bps lower at 2.64. …I took this deal 2 months ago albeit the rate was 5bps lower at 2.64. Don’t want it start until April due to existing exit penalties (erc’s) expiring. Would add the other benefit to this which is worth factoring in is that you overpay without restriction and if for any reason you wanted to exit the mortgage during the fixed term the erc’s are low in comparison to other providers... 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. Would also add the processing has been decent too and you can scan payslips and ID and submit via smartphone too...


I didn't realise you could take out a mortgage deal like this (now) and them postpone the start date to when your current mortgage come to an end. My current mortgage come to an end in Feb 2018 so this would be worth doing for me is this case. setting it all up now but only start the new mortgage in Feb. Have I understood this correctly?
davey3d_deals26 m ago

I didn't realise you could take out a mortgage deal like this (now) and …I didn't realise you could take out a mortgage deal like this (now) and them postpone the start date to when your current mortgage come to an end. My current mortgage come to an end in Feb 2018 so this would be worth doing for me is this case. setting it all up now but only start the new mortgage in Feb. Have I understood this correctly?


Yes - it will Likely take 6/8 weeks to process anyway. First direct use their conveyancing service “enact”. They contact you separately by post, complete some firms eg general property info, sign mortgage deed and there is a section to stipulate your completion date. You can either note asap or choose your date (as long as it’s within 6 months of your original application date).
Nice deal. In 2006 mine was 4.67% fixed for 10yrs. A great deal at the time. Heat
jazlabs7 h, 58 m ago

My guess - probably not. Even if they don't specifically exclude it, it …My guess - probably not. Even if they don't specifically exclude it, it will still go against you on the general affordability check. They want to ensure that you have substantial capital at risk too, or there's no real incentive for you to keep up repayments.Also, just noticed you said 10% deposit. This mortgage has a max LTV of 75%, which means you'd need a 25% deposit.Lenders want to know you can afford it on your own, if you need help from somewhere else they just see it as you reducing your deposit. When I bought my first home I used a 15% deposit contribution scheme from Barratt, only 2 lenders would provide a mortgage on it; Nationwide and Halifax. Nationwide have been absolutely amazing though, they offer great retention rates when you switch products, so I've always been on a market leading rate. I compare against the market every time, and they come out top - even if they may not have been the very best for the 1st fixed period.My advice would be to fix for a shorter amount of time if you're a first time buyer. You will likely be given a high rate because of your high LTV, and your range of products will be reduced due to use of HTB. If you fix for a short period, then hopefully you can raise more capital for re-mortgaging and lower that all important LTV, giving access to the better rates. Looking back, this was the mistake I made... I fixed for 5 years because I was afraid of a rate change, which effectively meant I ended up paying a higher rate than necessary for a few years. If I'd have fixed for 2 years, I could have lowered my LTV earlier and saved more over the same term.Remember. every time you make a payment (assuming you're not paying interest-only) you're reducing your LTV slightly, and also your house value is [likely] increasing (also reducing LTV). So the sooner you can re-mortgage, the sooner you benefit from the better LTV. Note; you will normally need to cross some threshold to get a better rate (e.g. 80%, 75%, 70%, 65%).Also, compare the market yourself - don't just trust your broker - especially if they are working on commission only! They will only offer a subset of the market! Mortgages aren't as complicated as some people think, and from my experience the brokers couldn't get any better rates than going direct to the lenders.


Thank you for the reply, great advice. By the time we apply for the mortgage I doubt this offer will be around. As it is we could afford over 10% deposit but the solicitor and broker have been discussing HTB as an option to get to 25%.

I’m more inclined to go for the 10% but deposit but was looking at a long term fix. However what you say regarding the benefits of fixing for say 2 years, I think that’s the route we are likely to go in order to get a better deal once the LTV drops. I’m looking at overpayments often due to overtime.

In regards to a first time mortgage would you consider fixing for 2 years but on a 35 year term to get a decent rate plus lower monthly payments which would be topped up when possible? Colleague has done this but unsure if it’s worth while instead of just doing a short fix for 25 years.
rosco1231 h, 17 m ago

Nice deal. In 2006 mine was 4.67% fixed for 10yrs. A great deal at the …Nice deal. In 2006 mine was 4.67% fixed for 10yrs. A great deal at the time. Heat


It’s a whole different world now compared to 2006, that was indeed a good rate as Bank of England rates could easily have changed back then. Since the recession we’re seeing rates going nowhere fast. 10 Years is a pretty safe bet by the banks as 2% is going to be above the base rate for years, so even if it surpassed the fixed rate, they’d have made their money in the first few years.
581d17 h, 14 m ago

This is first direct. Unless you pay 99% of your mortgage up front you …This is first direct. Unless you pay 99% of your mortgage up front you have no chance of the 2.69%, absolutely no chance


I remortgaged in July at 2.5%. After I filled application, 30 minutes later they asked me to scan payslips and work contract and other bank statement. 6 hours later I already had successful decision. In November I took £30,000 loan for house extension at 3%. After I filled application, they told me that my application was accepted. After I agreed to term an conditions, money was immediately transferred to my account, so don't blame first direct as it is fantastic bank. Rather look at your credit score - I usually use experian and before I will apply for lian/mortgage I always keep it at minimum 950.
jazlabs6 m ago

It’s a whole different world now compared to 2006, that was indeed a good r …It’s a whole different world now compared to 2006, that was indeed a good rate as Bank of England rates could easily have changed back then. Since the recession we’re seeing rates going nowhere fast. 10 Years is a pretty safe bet by the banks as 2% is going to be above the base rate for years, so even if it surpassed the fixed rate, they’d have made their money in the first few years.


Mortgage free now. 11 years. Yeehaaa
robgoode12 m ago

Thank you for the reply, great advice. By the time we apply for the …Thank you for the reply, great advice. By the time we apply for the mortgage I doubt this offer will be around. As it is we could afford over 10% deposit but the solicitor and broker have been discussing HTB as an option to get to 25%. I’m more inclined to go for the 10% but deposit but was looking at a long term fix. However what you say regarding the benefits of fixing for say 2 years, I think that’s the route we are likely to go in order to get a better deal once the LTV drops. I’m looking at overpayments often due to overtime.In regards to a first time mortgage would you consider fixing for 2 years but on a 35 year term to get a decent rate plus lower monthly payments which would be topped up when possible? Colleague has done this but unsure if it’s worth while instead of just doing a short fix for 25 years.



The term isn’t really that important for your first mortgage term, use it to get a monthly amount you’re happy with. You can change the term when you switch product after the initial term if you want to reduce it. If you want to make overpayments make sure this is allowed on the product, many fixed rate products limit this to around £500pm. I’m currently on a 2-year 1.7% tracker with no overpayment limit and no exit fees as we’re looking to move next year. Trackers are also safe for a good few years, increasing the base rate significantly in the next 10yrs would bankrupt too much of the population. I’m no advisor, but if I were a first time buyer right now I’d probably look for a 2 or 3 year fixed deal. If you think you can make enough overpayments (or savings) to drastically reduce the LTV in less than 3yrs, then maybe I’d go for 2yrs over 3 or even risk a tracker (as you can afford a rise in the base rate).

Regarding help to buy, it depends what effect it has on either; reducing your rate (based on lower LTV) or reducing your options (due to lenders not liking HTB). I’m not sure which option is better.
chantalle17 h, 20 m ago

Not getting a mortgage but looking at this post got me a deer Not getting a mortgage but looking at this post got me a deer [Image]


Neither the beard nor the flamedeer is white!
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