Unfortunately, this deal is no longer available
First Direct - 1.64% 5-year fixed fee saver mortgage - LTV 60%
2185° Expired

First Direct - 1.64% 5-year fixed fee saver mortgage - LTV 60%

176
Posted 16th Feb

This deal is expired. Here are some options that might interest you:

Decent rate for a 5 year fix with no admin fees to pay. Cheaper than the HSBC rate that's recently reduced.

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Eligible customers include if you are remortgaging, moving home, existing mortgage customer or a first time buyer. The 5 year fix rate is 1.64% and need 40% equity to get this rate.With FD mortgages you can make unlimited overpayments without charge. Please note there is an early repayment charge if you repay the whole of your mortgage during the Fixed Rate Period. 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.


How to compare mortgages
To calculate the total cost of a mortgage deal. You can do this by adding together the total monthly payments over the fixed period (5 x 12 = 60 payments in this case) then adding any product fee minus any cashback.

LTVs
LTV stands for loan-to-value and is the percentage of the property’s value you want to
borrow. So if a property is worth £100,000 and you need to borrow £60,000, your LTV is 60%; if you need to borrow £90,000, your LTV would be 90%. All other things being equal, the lower your LTV, the better the mortgage rates you’ll be offered.
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willllllllll16/02/2020 20:41

Nice but why is it they only offer nice rates at this sort of LTV? Been …Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.


It's purely a risk thing from the bank's perspective. It's harsh if you're on the receiving end of it but it's logical if you think about it.
foggyboy8917/02/2020 11:32

Avoid First Direct- their customer service is appallingly bad.


voted top of customer satisfaction surveys every year
foggyboy8917/02/2020 11:32

Avoid First Direct- their customer service is appallingly bad.


Evidence and experience suggests (very strongly) otherwise.
willllllllll16/02/2020 20:41

Nice but why is it they only offer nice rates at this sort of LTV? Been …Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.


This kind of mortgage is going to be unrealistic for a first timer. It may be worth looking into getting a mortgage that has a higher LTV and then use that rent money to get your LTV down quicker.
176 Comments
This would have been perfect for me about 10 months ago, sadly best deal with no fees was about 2% at the time. Voted hot, good deal for those with low payments mortgage.
Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.
Edited by: "willllllllll" 16th Feb
This was posted over two months ago, we got on it then. Not sure if it's ever gone away. Still a good deal though.
willllllllll16/02/2020 20:41

Nice but why is it they only offer nice rates at this sort of LTV? Been …Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.


This kind of mortgage is going to be unrealistic for a first timer. It may be worth looking into getting a mortgage that has a higher LTV and then use that rent money to get your LTV down quicker.
willllllllll16/02/2020 20:41

Nice but why is it they only offer nice rates at this sort of LTV? Been …Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.


It's purely a risk thing from the bank's perspective. It's harsh if you're on the receiving end of it but it's logical if you think about it.
willllllllll16/02/2020 20:41

Nice but why is it they only offer nice rates at this sort of LTV? Been …Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.


Higher LTV = higher risk to the bank. Same with all borrowing, more risk means higher rates.
willllllllll16/02/2020 20:41

Nice but why is it they only offer nice rates at this sort of LTV? Been …Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.


Understand what you mean about saving endlessly just to achieve any sort of deposit these days but the lower the LTV the lower the perceived risk for the bank (that they wouldn’t make a full recovery if you default, most probably when economy and house prices crash) so the regulator makes them put less money aside in case you default - therefore lower rate makes sense as they make a better return.
willllllllll16/02/2020 20:41

Nice but why is it they only offer nice rates at this sort of LTV? Been …Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.


I bought 12 years ago with a 100% mortgage, rates were around 4% then I'm now at around 50% LTV with APR of 2%
Edited by: "backyard" 16th Feb
jk8416/02/2020 21:17

Understand what you mean about saving endlessly just to achieve any sort …Understand what you mean about saving endlessly just to achieve any sort of deposit these days but the lower the LTV the lower the perceived risk for the bank (that they wouldn’t make a full recovery if you default, most probably when economy and house prices crash) so the regulator makes them put less money aside in case you default - therefore lower rate makes sense as they make a better return.


Just typed something similar, then saw yours. Also a lot of repossessions are sold through auction, tend to go for less than if sold through an estate agent. Theres an even nastier trick they do, which is make you pay for an insurance so they get the difference if the sale price is lower than the loan. The sting in that is, the insurance company then go after the defaulter for the sum that was paid. Should be illegal but we all know what banks and insurance companies are like.
backyard16/02/2020 21:25

I bought 12 years ago with a 100% mortgage, rates were around 4% then …I bought 12 years ago with a 100% mortgage, rates were around 4% then I'm now at around 50% LTV with APR of 2%


APR isn't the same thing as the interest rate you are charged. It's a metric for comparing different quotes with different rates and fees.

It's possible for a lower rate with high setup fees to have a higher APR than a higher rate with no fees.
Edited by: "matej_jones" 16th Feb
There is even lower rate (1.49%) available from First Direct for that LTV if you’re willing to pay £490 booking fee.

Tis is what I decided to go for last month.
Edited by: "gu33mis" 16th Feb
gu33mis16/02/2020 23:14

There is even lower rate (1.49%) available from First Direct for that LTV …There is even lower rate (1.49%) available from First Direct for that LTV if you’re willing to pay £490 booking fee.Tis is what I decided to go for last month.


Yes but you may be paying more for the initial term cost anyway. Here's an example of when this quote beats yours.

Edit: There are cases where the product fee version does beat the non fee version of course; which happens around 115k+ borrowed (they're within margin of error at 115k). The more you borrow the better the lower percentage deal with the small fee is.


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Edited by: "darkwolfdude" 17th Feb
darkwolfdude17/02/2020 00:34

Yes but you may be paying more for the initial term cost anyway. Here's an …Yes but you may be paying more for the initial term cost anyway. Here's an example of when this quote beats yours.[Image]


Is there an app that works out initial term cost like in your screenshot? This would be super handy
Yesgo17/02/2020 01:29

Is there an app that works out initial term cost like in your screenshot? …Is there an app that works out initial term cost like in your screenshot? This would be super handy


This is using the money supermarket site on mobile.

moneysupermarket.com/mor…er/
Can this deal apply for help to buy?
Im already with FD on a 2.3% 5 year fix that ends in May. In theory would it be easy for me to transfer to this given im already with FD.
As others have said if you have a larger mortgage a lower rate with a fee will be a better deal. Good rate though for a fee free!

Always take professional advice. People often overlook the hidden fees, ERCs etc sometimes contained in these products.
First direct also do a five year fix at 1.49% with a £490 fee which would work out a better deal if you borrowing more than 60k
anthony6917/02/2020 06:19

Im already with FD on a 2.3% 5 year fix that ends in May. In theory would …Im already with FD on a 2.3% 5 year fix that ends in May. In theory would it be easy for me to transfer to this given im already with FD.


Should be a matter of a quick phone call - and should be possible for you to do today. Many lenders allow you to prebook rates up to 3 months in advance. First Direct, last time I checked, allowed this to be done 6 months in advance.

I've still got 3 years left in my 5 year fix at 1.84% so this is a no-go for me.
Edited by: "marathonic" 17th Feb
anthony6917/02/2020 06:19

Im already with FD on a 2.3% 5 year fix that ends in May. In theory would …Im already with FD on a 2.3% 5 year fix that ends in May. In theory would it be easy for me to transfer to this given im already with FD.


Don't expect to move to a different mortgage with First Direct with a quick 5 min phone call.

I have been a FD customer for 10 years (current account where salary is paid), had a mortgage with them for 8, and wanted to remortgage to this product (5 years fixed rate): it took two very long calls (longer than 1 hour each), when they asked me many of the same questions they would ask a new customer. Most questions were asked as if they had no financial information on me at all, including salary, outgoings etc.

Change then took another 3 weeks, and they didn't even have to do a new valuation. My LTV was 20% only, and I have never been overdrawn nor missed a mortgage payment.

Good for them to apply due diligence but they go a bit far. The stranger thing is: I haven't signed a single piece of paper for the new mortgage and it's in place now.
Edited by: "tomtomato" 17th Feb
Valuation fees seem high


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willllllllll16/02/2020 20:41

Nice but why is it they only offer nice rates at this sort of LTV? Been …Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.


It’s risk vs reward for them. At 60% LTV, their revenue is guaranteed for 5 years on each mortgage they underwrite. The housing market won’t ever dip 40% so the income from it is completely safe where as at 90% LTV, if the market slumps that much the home owners would be in negative equity and they could default. The fees for 90% LTV will be higher due to the risk to the provider being more.
Edited by: "Laurie_Ballard" 17th Feb
Laurie_Ballard17/02/2020 07:24

It’s risk vs reward for them. At 60% LTV, their revenue is guaranteed for 5 …It’s risk vs reward for them. At 60% LTV, their revenue is guaranteed for 5 years on each mortgage they underwrite. The housing market won’t ever dip 40% so the income from it is completely safe where as at 10% LTV, if the market slumps that much the home owners would be in negative equity and they could default. The fees for 10% LTV will be higher due to the risk to the provider being more.


LTV means Loan to Value. The lower the better/safer for the bank, e.g. a £30k loan for a £100k property is 30% LTV.
tomtomato17/02/2020 07:41

LTV means Loan to Value. The lower the better/safer for the bank, e.g. a …LTV means Loan to Value. The lower the better/safer for the bank, e.g. a £30k loan for a £100k property is 30% LTV.



Yep, that’s what I said.
Hi, I don’t know a lot about mortgages but I’m in my second year with Halifax with fix rate for 5 years can I change to this?
Laurie_Ballard17/02/2020 07:41

Yep, that’s what I said.


No you said the exact opposite: "The fees for 10% LTV will be higher due to the risk to the provider being more.". A 10% LTV is good for the bank/low risk, not bad...
Edited by: "tomtomato" 17th Feb
happyman198217/02/2020 07:47

Hi, I don’t know a lot about mortgages but I’m in my second year with Hal …Hi, I don’t know a lot about mortgages but I’m in my second year with Halifax with fix rate for 5 years can I change to this?


You could but probably would have to pay Early Redemption Charges of 2% or 3% of the initial value of the mortgage. Most likely not worth it.
tomtomato17/02/2020 07:49

No you said the exact opposite: "The fees for 10% LTV will be higher due …No you said the exact opposite: "The fees for 10% LTV will be higher due to the risk to the provider being more.". A 10% LTV is good for the bank/low risk, not bad...


I meant 90% LTV, corrected.
Can I just say that having tried most high street retailers for mortgages, that Trussle are a far better option.
I've just remortgaged with FD. I went for the 1.49% with the £490 fee. Works out a lot cheaper over the term of 5 years.
happyman198217/02/2020 07:47

Hi, I don’t know a lot about mortgages but I’m in my second year with Hal …Hi, I don’t know a lot about mortgages but I’m in my second year with Halifax with fix rate for 5 years can I change to this?


I made the mistake of fixing for 10 years back when the interest rates where around 5% (2006). Then interest rates plummeted. I did the maths and it worked out cheaper to pay the 3% ERC (Early Repayment Charge) of around £3,000 and switch to a new mortgage with a much lower interest rate. It was very painful to hand over that money.
paypeanuts17/02/2020 08:30

I made the mistake of fixing for 10 years back when the interest rates …I made the mistake of fixing for 10 years back when the interest rates where around 5% (2006). Then interest rates plummeted. I did the maths and it worked out cheaper to pay the 3% ERC (Early Repayment Charge) of around £3,000 and switch to a new mortgage with a much lower interest rate. It was very painful to hand over that money.


£3000 that’s a lot but the %5 also high compare to mine %2.03
jamesslane17/02/2020 08:23

I've just remortgaged with FD. I went for the 1.49% with the £490 fee. …I've just remortgaged with FD. I went for the 1.49% with the £490 fee. Works out a lot cheaper over the term of 5 years.


Depends the size of your mortgage. In my case, a higher rate with no fee was cheaper...
happyman198217/02/2020 08:32

£3000 that’s a lot but the %5 also high compare to mine %2.03


Yep, the interest rate back in 2006 was indeed higher than in recent years.
willllllllll16/02/2020 20:41

Nice but why is it they only offer nice rates at this sort of LTV? Been …Nice but why is it they only offer nice rates at this sort of LTV? Been saving for years as well as paying rent and will be very lucky if can manage 25% deposit in the end. Hamster wheel of financial slavery is what it feels like.



Just think yourself lucky you don’t live in the golden age of 11%+ mortgages.

If the difference between 1.6% and 2% is terrifying, perhaps don’t buy a house. Because of interest rates shoot up (again), you’re going to have to sell.
Just got this (as a first time buyer). FYI, it's unlimited free overpayment. I'm not sure any of the other banks are offering this around this rate.
I took this - suits me down to the ground
Just call a free broker, they’ll do cost over credit, including product fees, valuations and any cash back. Rate isn’t everything
In the last week we’ve gone through Habito for the place we’re buying, which is roughly 50% LTV - they sent a list of 28 offers from lenders, and in their recommendations were 10 different mortgages offering 5-year fixed rate, all 1.49% or less (lowest was Halifax at 1.46%, but their fees were higher).

Compared to the terms of our current fixed-rate deal, which is on a cheaper property, the one we’ve gone with means we’re basically paying £48 less per month. Ultimately the value for money is ridiculously good long-term.
Edited by: "wotguvnotmeguv" 17th Feb
first direct are a great bank! Heat
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