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First Direct 5 year fixed mortgage - 1.49% - £490 fee - 60% LTV @ First Direct
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First Direct 5 year fixed mortgage - 1.49% - £490 fee - 60% LTV @ First Direct

121
Posted 14th May
A great 5 year fix from FD @ 1.49% with those on a 60% LTV or better. No exit fees plus porting allowed and unlimited overpayments. Link takes you straight to the mortgage details page where you find details to apply online or via phone.

Deal will be better for many borrowers than the santander 1.44% deal due to the lower booking fee and no exit fees unlike Santander who charge a few hundred pounds from memory, depending on personal circumstances if course

Hope it helps someone



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  • Max LTV 60% - Fixed for 5 years
  • Initial rate 1.49% then 3.54% (variable)
  • Monthly repayments £499
  • Scheme fees £490
  • Annual cost £6,090
  • Booking fee £490
  • Arrangement fee £0
  • Valuation fee £0
  • Other fees £0
  • Cashback £0
  • Overpayments allowed? Unlimited
  • Early Repayment Charge: 3% reducing to 2% for 5 years
  • Exit fee £0
  • Basic legals Payable

Representative example A mortgage of £125,000 payable over 25 years, initially on a fixed rate for 5 years at 1.49% and then on a variable rate of 3.54% for the remaining 20 years would require 60 payments of £499 and 240 payments of £602. The total amount payable would be £174,910 made up of the loan amount plus interest (£49,420) and fees (£490). The overall cost for comparison is 2.6% APRC representative.

Max LTV 60% Early Repayment Charges apply

Overall cost for comparison 2.6% APRC
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Even with the £490 fee, with the low ERCs and the unlimited overpayments I think this is a slightly better deal than the HSBC one. I have been so close to pulling the trigger on this for a few days now.
heat for the cusotmer services alone
Excellent bank. Cannot recommend them enough!
121 Comments
Sounds sweet, do you have to have a bank account with them for this?
Sooner or later im going to have to take advantage of someones deal,and 5 years seems a good period of time and rate,although i havent looked around yet so there just might be a slightly better deal somewhere else.
may be cheaper to go with No Booking fee deal, depending on amount you borrow, so check both before deciding
heat for the cusotmer services alone
good deal!
Excellent bank. Cannot recommend them enough!
I have this rate for life with HSBC. Even though I bank with First Direct they didn't offer such a good deal and wouldn't match it even though they are part of the same group.

Offers come and go. Its about taking the best one when the time is right.
Edited by: "fiqqer" 14th May
fiqqer14/05/2020 12:39

I have this rate for life with HSBC. Even though I bank with First Direct …I have this rate for life with HSBC. Even though I bank with First Direct they didn't offer such a good deal and wouldn't match it even though they are part of the same group.Offers come and go. Its about taking the best one when the time is right.


How on earth did you get this rate from hsbc for life? What was ur ltv? When did you take it? Was it from broker?
ab71314/05/2020 12:46

How on earth did you get this rate from hsbc for life? What was ur ltv? …How on earth did you get this rate from hsbc for life? What was ur ltv? When did you take it? Was it from broker?



It was in 2006, 60% ltv. Direct from HSBC. It was not a new mortgage - a transfer from an existing mortgage. With no exit fee.
Edited by: "fiqqer" 14th May
No exit fees is very attractive and pretty unusual
Even with the £490 fee, with the low ERCs and the unlimited overpayments I think this is a slightly better deal than the HSBC one. I have been so close to pulling the trigger on this for a few days now.
Overpayments allowed?Unlimited
Early Repayment Charge:3% reducing to 2% for 5 years


what? i'm confused
Edited by: "L_V" 14th May
L_V14/05/2020 13:07

Overpayments allowed?UnlimitedEarly Repayment Charge:3% reducing to 2% for …Overpayments allowed?UnlimitedEarly Repayment Charge:3% reducing to 2% for 5 yearswhat? i'm confused


unlimited overpayments are allowed during the fixed period. Most other companies only allow a maximum of 10% each year.

ERC is 3% in year one and then 2% for years 2-5 which is again much better than most other companies who tend to go 5,4,3,2,1
Edited by: "KingBob72" 14th May
L_V14/05/2020 13:07

Overpayments allowed?UnlimitedEarly Repayment Charge:3% reducing to 2% for …Overpayments allowed?UnlimitedEarly Repayment Charge:3% reducing to 2% for 5 yearswhat? i'm confused


ERC = early redemption charge
so if you had a £200k mortgage and overpaid £199,999 you wouldn't be charged and ERC, but if you overpaid £200k you would be charged an ERC within the mortgage period?
L_V14/05/2020 13:31

so if you had a £200k mortgage and overpaid £199,999 you wouldn't be c …so if you had a £200k mortgage and overpaid £199,999 you wouldn't be charged and ERC, but if you overpaid £200k you would be charged an ERC within the mortgage period?


Well you couldn’t break that outstanding 1 pound into remaining monthly’s.

Bit of an extreme example. Note you also cannot remortgage easily with 2nd charge on the freehold. Ie have this outstanding 1 pound and remortgage with another provider
KingBob7214/05/2020 13:04

Even with the £490 fee, with the low ERCs and the unlimited overpayments I …Even with the £490 fee, with the low ERCs and the unlimited overpayments I think this is a slightly better deal than the HSBC one. I have been so close to pulling the trigger on this for a few days now.


Totally agree mate
Check also the 5 year 1.64% but with zero fees for a 60% LTV.
matedodgy14/05/2020 11:56

Sounds sweet, do you have to have a bank account with them for this?


No I got an AIP for this yesterday with them and I’ve never banked with them. Recommend you do over the phone though so they can take everything into account that sometimes online miss.

Took about an hour though to go through on the phone.
fluffycupcake14/05/2020 14:45

https://www.theguardian.com/business/2020/may/13/uk-property-market-could-fall-13-housing-experts-predict


Best to get remortgaging quickly then for the best LTVs!
fluffycupcake14/05/2020 14:45

https://www.theguardian.com/business/2020/may/13/uk-property-market-could-fall-13-housing-experts-predict



Exactly right. These companies have forecasting for the downturns and attractive rates are there because of what they see in the next few years. The offers in 2006 were followed by a severe slump in 2008 with many people trapped and unable to afford the mortgages. We will have a very severe slump in the economy so only take out a mortgage if you can afford it and are secure in your job. You may not have a job next year.

If you have an existing mortgage - which this is designed for given the high LTV of 60% then this could lead to substantial savings. I saw my mortgage go down from 1200 to 800 a month, so the £490 fee was quickly made up even after the first month.
Edited by: "fiqqer" 14th May
fiqqer14/05/2020 12:51

It was in 2006, 60% ltv. Direct from HSBC. It was not a new mortgage - a …It was in 2006, 60% ltv. Direct from HSBC. It was not a new mortgage - a transfer from an existing mortgage. With no exit fee.


Fantastic deal considering the BoE interest rate in 2006 ranged from 4.5 to 5%.

I wish I'd have had the foresight.
Edited by: "PeterProxy2017" 14th May
PeterProxy201714/05/2020 15:36

Fantastic deal considering the BoE interest rate in 2006 ranged from 4.5 …Fantastic deal considering the BoE interest rate in 2006 ranged from 4.5 to 5%.I wish I'd have had the foresight.



3 years later the base rate was .5%.
Edited by: "fiqqer" 14th May
Great deal. Especially with unlimited over payments
My head spins with these!

I was looking at the Santander deal this morning and thought it sounded good - but I'm thinking this one might actually be better for me.

I currently have a flexible mortgage which suits me well - I was going to stick with it until we have some building work done (rate is quite high at the moment though as I'm not in a deal period).

However that has been put on hold until next year due to the lockdown - so I'm thinking this will save me a fair amount.

I currently have a mortgage of £60k but a facility of £100k - value of around £215k. The facility bit just means I can spend up to 40k. The facility decreases each year but has been growing as I make extra payments each year.

I could do with something that is quite flexible like this. As this one has unlimited overpayments am I right in saying it will be quite like my current setup.

I'm thinking I will need to take a mortgage out for more than the 60k so I have some spare for the building work - perhaps £75k.

I'm thinking if I apply for a 15 year mortgage - then the payments will be (very quick rough calculation) £465 per month.

I would then try to overpay so that I pay a total of about £1000/month.

That would leave £18-£19k at the end of the 5 years. Am I right that I'd be find to overpay that much and then move to a new provider at the end of the 5 years without any charge?

If I was really tight for the next 5 years and found £1250 per month - then I'd be pretty much paid off by the end. However I prefer to keep access to some money for emergencies.


Sorry for the ramblings -just getting my thoughts together as well as seeing if anyone can spot any errors/misconceptions in my thinking!

I'll need a new current account and possibly savings account as well as they are all tied together at the moment. Is it best / easiest to have them with the same company or better to have them elsewhere?
nbuuifx14/05/2020 15:54

My head spins with these!I was looking at the Santander deal this morning …My head spins with these!I was looking at the Santander deal this morning and thought it sounded good - but I'm thinking this one might actually be better for me.I currently have a flexible mortgage which suits me well - I was going to stick with it until we have some building work done (rate is quite high at the moment though as I'm not in a deal period).However that has been put on hold until next year due to the lockdown - so I'm thinking this will save me a fair amount.I currently have a mortgage of £60k but a facility of £100k - value of around £215k. The facility bit just means I can spend up to 40k. The facility decreases each year but has been growing as I make extra payments each year.I could do with something that is quite flexible like this. As this one has unlimited overpayments am I right in saying it will be quite like my current setup.I'm thinking I will need to take a mortgage out for more than the 60k so I have some spare for the building work - perhaps £75k.I'm thinking if I apply for a 15 year mortgage - then the payments will be (very quick rough calculation) £465 per month.I would then try to overpay so that I pay a total of about £1000/month.That would leave £18-£19k at the end of the 5 years. Am I right that I'd be find to overpay that much and then move to a new provider at the end of the 5 years without any charge?If I was really tight for the next 5 years and found £1250 per month - then I'd be pretty much paid off by the end. However I prefer to keep access to some money for emergencies.Sorry for the ramblings -just getting my thoughts together as well as seeing if anyone can spot any errors/misconceptions in my thinking!I'll need a new current account and possibly savings account as well as they are all tied together at the moment. Is it best / easiest to have them with the same company or better to have them elsewhere?


I think it would be slightly higher on 75k over 15. 75,000 / 180 (months) + 75k * 0.0149 / 12 = £509.

Very quick so I might of missd something.
nbuuifx14/05/2020 15:54

My head spins with these!I was looking at the Santander deal this morning …My head spins with these!I was looking at the Santander deal this morning and thought it sounded good - but I'm thinking this one might actually be better for me.I currently have a flexible mortgage which suits me well - I was going to stick with it until we have some building work done (rate is quite high at the moment though as I'm not in a deal period).However that has been put on hold until next year due to the lockdown - so I'm thinking this will save me a fair amount.I currently have a mortgage of £60k but a facility of £100k - value of around £215k. The facility bit just means I can spend up to 40k. The facility decreases each year but has been growing as I make extra payments each year.I could do with something that is quite flexible like this. As this one has unlimited overpayments am I right in saying it will be quite like my current setup.I'm thinking I will need to take a mortgage out for more than the 60k so I have some spare for the building work - perhaps £75k.I'm thinking if I apply for a 15 year mortgage - then the payments will be (very quick rough calculation) £465 per month.I would then try to overpay so that I pay a total of about £1000/month.That would leave £18-£19k at the end of the 5 years. Am I right that I'd be find to overpay that much and then move to a new provider at the end of the 5 years without any charge?If I was really tight for the next 5 years and found £1250 per month - then I'd be pretty much paid off by the end. However I prefer to keep access to some money for emergencies.Sorry for the ramblings -just getting my thoughts together as well as seeing if anyone can spot any errors/misconceptions in my thinking!I'll need a new current account and possibly savings account as well as they are all tied together at the moment. Is it best / easiest to have them with the same company or better to have them elsewhere?



My experiences with high street banks is bad. For this reason I have a current account with one bank and savings account with another. That way I can easily switch from one to the other if they decide to behave as appallingly as my previous banks have. Thankfully these online banks are far better than high street ones.
Go to a mortgage expert, they nearly always will get you the best deal on the market.
jakeyjakey14/05/2020 16:03

I think it would be slightly higher on 75k over 15. 75,000 / 180 (months) …I think it would be slightly higher on 75k over 15. 75,000 / 180 (months) + 75k * 0.0149 / 12 = £509.Very quick so I might of missd something.


I was trying to take into account the fact that the balance would be reducing on a monthly basis - is that not how it is worked out? Wouldn't your calculation expect a balance of 75000 to be maintained for the full 180 months to create that amount?
Would they deal with shared ownership?
originalusername14/05/2020 16:09

Would they deal with shared ownership?


When I applied they made me confirm I didn’t have shared ownership so don’t think so. Check the site though
nbuuifx14/05/2020 16:08

I was trying to take into account the fact that the balance would be …I was trying to take into account the fact that the balance would be reducing on a monthly basis - is that not how it is worked out? Wouldn't your calculation expect a balance of 75000 to be maintained for the full 180 months to create that amount?


Oh yes as you’re paying capital down at a rate of £1000pm it would decrease by 1/75 each month... I think so 509, 502, 495 etc
Edited by: "jakeyjakey" 14th May
I'm on 1.49% + the base rate at the moment with HSBC and can make as many overpayments as I wish, been on it 11 years now paid a large chunk of it off. Not sure if to go for this to ensure any base rate hike doesn't affect me but saying that can you really see them putting that up much in the next 2-3 years? They'll want to try and get people out spending again surely?
L_V14/05/2020 13:31

so if you had a £200k mortgage and overpaid £199,999 you wouldn't be c …so if you had a £200k mortgage and overpaid £199,999 you wouldn't be charged and ERC, but if you overpaid £200k you would be charged an ERC within the mortgage period?


Sort of but not quite.

If you closed the mortgage completely within 5 years, you would be hit by the charge. You can overpay as much as you like as long as you don't end up closing the mortgage early. In your example, you would end up closing the mortgage early as your next month's payment would be over £1.

The way to do it is call them, discuss the amount of overpayment you want to make and they can then reduce your monthly payments so that you don't accidentally end up finishing your mortgage within 5 years. This will have to be reasonable i.e. they won't make your mortgage payment 1p a month.
nbuuifx14/05/2020 15:54

My head spins with these!I was looking at the Santander deal this morning …My head spins with these!I was looking at the Santander deal this morning and thought it sounded good - but I'm thinking this one might actually be better for me.I currently have a flexible mortgage which suits me well - I was going to stick with it until we have some building work done (rate is quite high at the moment though as I'm not in a deal period).However that has been put on hold until next year due to the lockdown - so I'm thinking this will save me a fair amount.I currently have a mortgage of £60k but a facility of £100k - value of around £215k. The facility bit just means I can spend up to 40k. The facility decreases each year but has been growing as I make extra payments each year.I could do with something that is quite flexible like this. As this one has unlimited overpayments am I right in saying it will be quite like my current setup.I'm thinking I will need to take a mortgage out for more than the 60k so I have some spare for the building work - perhaps £75k.I'm thinking if I apply for a 15 year mortgage - then the payments will be (very quick rough calculation) £465 per month.I would then try to overpay so that I pay a total of about £1000/month.That would leave £18-£19k at the end of the 5 years. Am I right that I'd be find to overpay that much and then move to a new provider at the end of the 5 years without any charge?If I was really tight for the next 5 years and found £1250 per month - then I'd be pretty much paid off by the end. However I prefer to keep access to some money for emergencies.Sorry for the ramblings -just getting my thoughts together as well as seeing if anyone can spot any errors/misconceptions in my thinking!I'll need a new current account and possibly savings account as well as they are all tied together at the moment. Is it best / easiest to have them with the same company or better to have them elsewhere?



If I were you I would go for a 10 year fix allowing over payments. Try finding a deal sub 2% pref with no fee.
ethos14/05/2020 16:24

Sort of but not quite.If you closed the mortgage completely within 5 …Sort of but not quite.If you closed the mortgage completely within 5 years, you would be hit by the charge. You can overpay as much as you like as long as you don't end up closing the mortgage early. In your example, you would end up closing the mortgage early as your next month's payment would be over £1.The way to do it is call them, discuss the amount of overpayment you want to make and they can then reduce your monthly payments so that you don't accidentally end up finishing your mortgage within 5 years. This will have to be reasonable i.e. they won't make your mortgage payment 1p a month.



Sorry I was thinking this mortgage was interest only, but yes your explanation makes sense

Thanks!
My current fixed rate mortage deal with FD ends in May next year. I guess i wouldn't be able to move me onto this one as its too soon?.

Maybe they would let me switch to this early penalty free as i would be staying with FD?

I really like the no exit fees to swith away from this deal..
Edited by: "anthony69" 14th May
Willy_Wonka14/05/2020 16:28

If I were you I would go for a 10 year fix allowing over payments. Try …If I were you I would go for a 10 year fix allowing over payments. Try finding a deal sub 2% pref with no fee.


I was put off the 10 year ones as I hope to finish paying it off within 10 years really, realistically I'm hoping for 8 years, but if I can get a promotion then possibly 5.



I'm just collecting bits together I might need - I'm getting together outgoing monthly bills, current credit card balances, last 3 months payslips for me and my wife. Anything else I'd need?
nbuuifx14/05/2020 16:08

I was trying to take into account the fact that the balance would be …I was trying to take into account the fact that the balance would be reducing on a monthly basis - is that not how it is worked out? Wouldn't your calculation expect a balance of 75000 to be maintained for the full 180 months to create that amount?



You pay the same each month. Its only what you owe changes over time, not what you pay. In the initial years you will see very little change in what you owe, as most of the payments is the interest. In later years huge chunks of what you owe decrease, until your mortgage is paid off. But you still pay the same amount each month for the life of your fixed rate mortgage.
nbuuifx14/05/2020 16:33

I was put off the 10 year ones as I hope to finish paying it off within 10 …I was put off the 10 year ones as I hope to finish paying it off within 10 years really, realistically I'm hoping for 8 years, but if I can get a promotion then possibly 5.I'm just collecting bits together I might need - I'm getting together outgoing monthly bills, current credit card balances, last 3 months payslips for me and my wife. Anything else I'd need?


only bank statements (featuring your pay going in) and any other income, any bnpl/store payments etc. They also do open banking so they can see into your account and don’t have to worry about uploading statements if you’d prefer.
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