First Direct 2-year Fixed mortgage 65% LTV 1.49% (no fee for existing customers, £950 for new although potential workaround)
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First Direct 2-year Fixed mortgage 65% LTV 1.49% (no fee for existing customers, £950 for new although potential workaround)

27
Found 27th Apr 2015
hotukdeals.com/tag/dea…290

A lot of people took advantage of the above deal and are now on the 1.79% lifetime tracker with no early repayment charges.

This morning, First Direct have reduced their fixed rates as follows:

2-year: 1.49%
3-year: 1.89%
5-year: 2.29%

There are all fee-free for existing mortgage customers.

The workaround referred to in the title if you're not already an existing customer involves applying for this tracker instead:

http://mortgages.firstdirect.com/mortgage-rates/product/life-tracker-repayment--fee-saver~43

Then, when the remortgage is complete, immediately applying for the fixed rate.

The workaround involves taking the risk that the fixed rate product will still be available by the time you complete your remortgage. No one here can advice you on that - you have to decide whether it's worth the risk and, if the product is no longer available, would you be happy enough with the 1.99% + BOE tracker you originally applied for.

27 Comments

The 3 year is tempting, I wonder if they'll drop further

They'll be at Zero soon lol

wow money sure is cheap! have some heat

Original Poster

elche286

wow money sure is cheap! have some heat



Less than £125 per month interest for a £100,000 loan - with no fees. It's a long time since it's been this good!
Edited by: "marathonic" 27th Apr 2015

Signed up for the 2 year in jan as an existing custo and it's just been agreed. Its a long process but obviosly worth it

marathonic

Less than £125 per month for a £100,000 loan - with no fees. It's a long t … Less than £125 per month for a £100,000 loan - with no fees. It's a long time since it's been this good!



I have to agree with that. I'm paying considerably more on my current resi mortgage

Original Poster

masekwm

The 3 year is tempting, I wonder if they'll drop further



I'd sooner go for the 2 year - 0.4% cheaper for two years meaning you can afford to pay 2.69% in the third year whilst still being ahead.

In my opinion, 2+ year fixes should be available cheaper than 2.69% in 2017 - of course, I may be wrong.

will the fee still need to be paid if they refuse my mortgage?

Just called as I am an existing customer but tied into a fixed mortgage already with 1st direct. Thought they might let you switch without redemption charges but to no avail. Just to save anyone else calling if you are considering it.

Slightly higher rates available for those with offset mortgages - 2yr 1.99 - 3yr 2.39

Good luck getting a mortgage from first direct lol.

crispsandwich

Just called as I am an existing customer but tied into a fixed mortgage … Just called as I am an existing customer but tied into a fixed mortgage already with 1st direct. Thought they might let you switch without redemption charges but to no avail. Just to save anyone else calling if you are considering it.



Yes I am in the same boat , they want their £1000,s of penalty fee for early redemption !!

I am sure when I was with them a decade ago they allowed me to swap to another of their product without penalty and when I was on a fix rate

Do you have to pay valuation fee when applying for a re-mortgage ?

With first Direct I paid nothing , no booking fee , no product fee, no valuation fee , and they even provide the solicitor , all for free !!!! this was a simple re-mortgage !!

crispsandwich

Just called as I am an existing customer but tied into a fixed mortgage … Just called as I am an existing customer but tied into a fixed mortgage already with 1st direct. Thought they might let you switch without redemption charges but to no avail. Just to save anyone else calling if you are considering it.


it is still worth considering even if you have an early redemption fee.
I remortgaged with them in February even though I had to pay £4k. I'll make that back in a year.

581d

Good luck getting a mortgage from first direct lol.



I've got one. But not at tis rate

Same as Newb, I had to pay £3k to get out, gone within 10 months.

65% LTV... not bad if you live up North... down London getting 45% deposit is difficult... Average around here is £300k...

interesting, fancy the look of the lifetime tracker 2.49% with no fee, thanks op.

We got on the 1.79% tracker via the thread mentioned. Question for those that know about such things: does the fact FD are now willing to offer these new fixes at such low rates suggest they don't believe the base rate will move much over the next few years?

DarkBat1

65% LTV... not bad if you live up North... down London getting 45% … 65% LTV... not bad if you live up North... down London getting 45% deposit is difficult... Average around here is £300k...


Actually, it's easier in London to get these deals.

Say you bought up North 2 years ago, you're house won't have increased at the same rate as if you bought a house near London.

We bought our house in a commuter town, an hour outside London, it's gone from 180k to 250k from November 2013 to Feb 2015, bingo 65% mortgage
Edited by: "masekwm" 27th Apr 2015

HXL

will the fee still need to be paid if they refuse my mortgage?


No - good job as they do like to refuse.

First Direct, owned by the Hidden Swiss Bank Company.
Edited by: "ro53ben" 28th Apr 2015

DarkBat1

65% LTV... not bad if you live up North... down London getting 45% … 65% LTV... not bad if you live up North... down London getting 45% deposit is difficult... Average around here is £300k...


100% - 65% LTV = 35% deposit.

If you pay £950 fees every 2 years over a 25 year mortgage you add over £11,000 onto your mortgage. You would probably be better off with a lifetime tracker. 2 years isn't enough time to protect you from rate shock so why bother.

Original Poster

stuartwilson754365

If you pay £950 fees every 2 years over a 25 year mortgage you add over … If you pay £950 fees every 2 years over a 25 year mortgage you add over £11,000 onto your mortgage. You would probably be better off with a lifetime tracker. 2 years isn't enough time to protect you from rate shock so why bother.



Because 'the deal' here involved avoiding paying the £950

Good point. Missed that.

Original Poster

masekwm

The 3 year is tempting, I wonder if they'll drop further



They probably will this Monday. First Direct are no longer competitive considering:

The West Brom, Tesco, YBS and a host of others have cheaper 2-year deals
YBS have a more competitive 3-year fix
Chelsea BS, HSBC, Natwest, RBS, YBS and others have cheaper 5-year deals

First Direct don't work with brokers and are known to be one of the most picky lenders. With this in mind, their only tactic to draw customers is to offer rates that top the best-buy tables. They aren't doing that at the moment with all the drops in interest rates that have come from other lenders.
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