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Remortage - First Direct 5 year - 1.59% - £490 Product fee - 75% LTV at First Direct
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Remortage - First Direct 5 year - 1.59% - £490 Product fee - 75% LTV at First Direct

48
Posted 3rd Jan

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

4.19% SVR after the 5 years

3.0% APRC

No other fees.
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Having recently taken out a mortgage with FD rather interestingly they allowed me to borrow until age 75.

They also allow unlimited overpayments as long as you don't settle the entire balance within the fixed term.

This gave me the flexibility of low payments but the option to overpay when and if I choose.
48 Comments
Is that fixed rate?
Currently I am on Santander mortgage until May 2020 Will I be able to switch now. Any advice please.
Yep. fixed rate. If you are on a fixed mortgage with Santander until May 2020 then you will likely have an early repayment charge. However if you're on their Standard Variable Rate (SVR) then you should be able to switch now.
Available for FTB? / new mortgages?
chrisdarl03/01/2020 14:44

Available for FTB? / new mortgages?


I don't see why not, as long as you have at least 75% LTV, but best check on their website..
Santander: RATE1.49% SET-UP FEES:£1,534 Maximum LTV 75% + possible £250 cashback
pintxo_2103/01/2020 15:09

Santander: RATE1.49% SET-UP FEES:£1,534 Maximum LTV 75% + possible £250 c …Santander: RATE1.49% SET-UP FEES:£1,534 Maximum LTV 75% + possible £250 cashback


I was looking at this, I think it was 1.58% a couple of weeks ago. And there's a £225 exit fee, so First Direct was better for me.
sabhasri03/01/2020 14:36

Currently I am on Santander mortgage until May 2020 Will I be able to …Currently I am on Santander mortgage until May 2020 Will I be able to switch now. Any advice please.


it depends on how long first direct allow you to hold the rate for. Barclays for example allow you 6 months. I held in my rate last march and switched in september so you may be able to do that with First direct if they allow 6 months but the standard is 3 months.
If youre not sure speak to a mortgage adviser.
What's the early exit fee on this?
Considering a switch from a Coventry variable rate and I think I just about have 75% LTV.
However might look at moving house in the next couple of year and don't want to end up forking out a for exit/transfer fee
c5803/01/2020 15:15

it depends on how long first direct allow you to hold the rate for. …it depends on how long first direct allow you to hold the rate for. Barclays for example allow you 6 months. I held in my rate last march and switched in september so you may be able to do that with First direct if they allow 6 months but the standard is 3 months.If youre not sure speak to a mortgage adviser.


Agreed. Get on the phone as my first direct mortgage took an eternity of discussions before the offer was made, it was then set to start when my current one ended.
Getting on with it early also allowed me time to sort out some issues on the land registry document that had been stuffed up by a useless solicitor when I purchased it and picked up on by first directs conveyancer
neon8503/01/2020 15:48

What's the early exit fee on this? Considering a switch from a Coventry …What's the early exit fee on this? Considering a switch from a Coventry variable rate and I think I just about have 75% LTV.However might look at moving house in the next couple of year and don't want to end up forking out a for exit/transfer fee


There's no exit fee if you want to move house. The mortgage is portable to a new property.
Fixed to a very similar rate for the last five years of my mortgage with First Direct a year and a half ago....3 and a half years to go!! Not that i'm counting or anything!
I am around 65% LTV which was frustrating at the time, seeing all these low percentage rates for 60% LTV. But when I factored in the high product fees (£1000. £1500 etc) this was a no-brainer as I have about £123k left to pay.

The £490 product and no exit fees won it for me.
Edited by: "ItsKimbo" 3rd Jan
Having recently taken out a mortgage with FD rather interestingly they allowed me to borrow until age 75.

They also allow unlimited overpayments as long as you don't settle the entire balance within the fixed term.

This gave me the flexibility of low payments but the option to overpay when and if I choose.
Can you get this if you're renting your property out?
komi03/01/2020 18:40

Can you get this if you're renting your property out?


Officially you need a buy2let mortgage.
Do first direct allow you to remortgage a property if you dont already have an outstanding mortgage on the property ?
Might sound an odd question but thinking of raising capital for a project and this would be less than half the interest of a standard loan.
tipperman04/01/2020 03:11

Do first direct allow you to remortgage a property if you dont already …Do first direct allow you to remortgage a property if you dont already have an outstanding mortgage on the property ? Might sound an odd question but thinking of raising capital for a project and this would be less than half the interest of a standard loan.


Sure.
sabhasri03/01/2020 14:36

Currently I am on Santander mortgage until May 2020 Will I be able to …Currently I am on Santander mortgage until May 2020 Will I be able to switch now. Any advice please.


yes, dont hang about it can take weeks, just ask the legal team to redeem mortgage to match the end of your fixed term to avoid early repayment charges
Edited by: "666bandit666" 4th Jan
Am sure I have just done FD at 1.49% fixed for 5 years with £490 fee and unlimited overpayments. Maybe the LTV was lower. Received offer in three weeks and now doing legal bits for 01.04.20
sabhasri03/01/2020 14:36

Currently I am on Santander mortgage until May 2020 Will I be able to …Currently I am on Santander mortgage until May 2020 Will I be able to switch now. Any advice please.


No. That’s not how it works. How did you buy a house in the first place?
Jarrvo03/01/2020 18:21

Having recently taken out a mortgage with FD rather interestingly they …Having recently taken out a mortgage with FD rather interestingly they allowed me to borrow until age 75. They also allow unlimited overpayments as long as you don't settle the entire balance within the fixed term. This gave me the flexibility of low payments but the option to overpay when and if I choose.


I don’t know if you are saying you are happy with them or not? You sound like you’re complaining but these are all positive things you say.
sabhasri03/01/2020 14:36

Currently I am on Santander mortgage until May 2020 Will I be able to …Currently I am on Santander mortgage until May 2020 Will I be able to switch now. Any advice please.

I'd speak to FD they'll be able to tell you how long prior you can lock the rate in.
HSBC and First Direct are part of the same group, yet First Direct always appear to offer better deals.
Has anyone moved house while locked into one of these deals? Do they sting you with an early repayment charge or are they happy to port it over and (if applicable) increase the borrowing amount?
miketg8904/01/2020 10:25

Has anyone moved house while locked into one of these deals? Do they sting …Has anyone moved house while locked into one of these deals? Do they sting you with an early repayment charge or are they happy to port it over and (if applicable) increase the borrowing amount?


You can port on my first direct mortgage

On my previous mortgage I ported the current mortgage with 2 years to run and then took out an additional 2 year fix for the extra cost with the same lender - it was a bit messy but I've never incurred fees
So, I'm on a base rate tracker of +0.89% for the life of my mortgage. I've got 5 years and 4 months left. Would it be worth trying to drop onto a 5 year fixed for the remainder of the mortgage to give me the security of payments?
miffyl04/01/2020 11:11

So, I'm on a base rate tracker of +0.89% for the life of my mortgage. I've …So, I'm on a base rate tracker of +0.89% for the life of my mortgage. I've got 5 years and 4 months left. Would it be worth trying to drop onto a 5 year fixed for the remainder of the mortgage to give me the security of payments?



Really depends on your appetite for risk and what you will be eligible for. Currently you're paying 1.64% so this beats it. The next year things will stay relatively the same re Brexit I would imagine due to the transition period. It's what things will be like into the mid 20s is the uncertainty.

If I was in your position and I was eligible I would switch to a fix, especially if you can get something close to 1.64%. You may not be eligible for such low rates though with the term/value left. Plug your values into the MoneySavingExpert best buy mortagages as a starting point to give you an idea.
Be on this if wasn’t for ERCs. Nice find
Im surprised this isnt hotter!
Thanks so much for this.

I done my maths and the total cost over 5 years for me compared to the Santander deal (1.49%, 1499 fee, 225 closure) is almost £700 less. The capital remaining wins on Santander by £200. FD just seem like a better company to deal with and the porting feature will be very useful should our circumstances change.

Phoned and received our agreement in principle. By the way, for anyone else wondering, FD is six months out maximum which suits me perfectly as my deal ends May 30th with Bank of Ireland. Hope it's helpful for someone else!
miffyl04/01/2020 11:11

So, I'm on a base rate tracker of +0.89% for the life of my mortgage. I've …So, I'm on a base rate tracker of +0.89% for the life of my mortgage. I've got 5 years and 4 months left. Would it be worth trying to drop onto a 5 year fixed for the remainder of the mortgage to give me the security of payments?


I'd say so, in fact we've recently made the same move. Obviously the banks probably wouldn't be offering these deals if they think rates will rise hugely any time soon but who knows what will happen to the economy over the next decade. The only thing for sure is that rates can't really get much lower.

One thing well worth considering if you can do so is to extend your remaining term. First Direct allow unlimited overpayments without charge so you could pay out the same amount per month but instead of it all being required/minimum payment it's split into required and overpayment. That way if something unexpected comes up - say you need a few extra hundred quid for a holiday, or your boiler breaks down - you just pause the overpayment for a month or two. You can mess with the overpayment as often and whenever you want. Otherwise you just keep overpaying and pay it all off just after the five year fix runs out, thus avoiding the 2% early repayment charges. The overall amount you pay by the end should be very similar if not the same, but you've benefited from that extra flexibility.
Edited by: "Whitedot" 4th Jan
I tried to find out if valuation and lawyers are free but it seems they charge for valuation and you pay your own lawyers? So at the end the fee is more like 1000 or more depending on the property value? This would be the same as Santander or Lloyd’s at the end as they offer 1.49, 1.5 for 5y.
bastecio197506/01/2020 12:36

I tried to find out if valuation and lawyers are free but it seems they …I tried to find out if valuation and lawyers are free but it seems they charge for valuation and you pay your own lawyers? So at the end the fee is more like 1000 or more depending on the property value? This would be the same as Santander or Lloyd’s at the end as they offer 1.49, 1.5 for 5y.


No, they don't. The only fee is the £490. I am in the later stages just waiting for coneyencer questionnaire.
ItsKimbo07/01/2020 08:41

No, they don't. The only fee is the £490. I am in the later stages just …No, they don't. The only fee is the £490. I am in the later stages just waiting for coneyencer questionnaire.


At least, for a re-mortgage
ItsKimbo07/01/2020 08:41

No, they don't. The only fee is the £490. I am in the later stages just …No, they don't. The only fee is the £490. I am in the later stages just waiting for coneyencer questionnaire.


Ok cool thanks so they pay for valuation and lawyers? how long did it take to go through process
bastecio197508/01/2020 08:42

Ok cool thanks so they pay for valuation and lawyers? how long did it take …Ok cool thanks so they pay for valuation and lawyers? how long did it take to go through process


Yes the only cost is the £490 fee, I am currently waiting for the conveyencer questionnaire from Enact (used by many mortage lenders)
But you still pay for the lawyers it says here: Legal fees

These are the fees payable to your solicitor or licensed conveyancer. first direct will also need a solicitor or licensed conveyancer to act on behalf of the bank. If your appointed solicitor / licensed conveyancer meets our criteria then we will appoint them to act on behalf of the bank. If not, first direct will instruct another solicitor. The borrower is responsible for these fees.
bastecio197509/01/2020 16:35

But you still pay for the lawyers it says here: Legal feesThese are the …But you still pay for the lawyers it says here: Legal feesThese are the fees payable to your solicitor or licensed conveyancer. first direct will also need a solicitor or licensed conveyancer to act on behalf of the bank. If your appointed solicitor / licensed conveyancer meets our criteria then we will appoint them to act on behalf of the bank. If not, first direct will instruct another solicitor. The borrower is responsible for these fees.


I was told by First Direct that the only fee I would have to pay is the £490. I asked explicitly about coneyencer / solictor fees, and would I need to hire my own solicitor. The reply was no because it is a re-mortage. If it was a new purchase then yes. you would likely have extra fees.
666bandit66604/01/2020 08:38

Am sure I have just done FD at 1.49% fixed for 5 years with £490 fee and …Am sure I have just done FD at 1.49% fixed for 5 years with £490 fee and unlimited overpayments. Maybe the LTV was lower. Received offer in three weeks and now doing legal bits for 01.04.20


That was for 60% LTV, same date as mine!
ItsKimbo10/01/2020 12:06

I was told by First Direct that the only fee I would have to pay is the …I was told by First Direct that the only fee I would have to pay is the £490. I asked explicitly about coneyencer / solictor fees, and would I need to hire my own solicitor. The reply was no because it is a re-mortage. If it was a new purchase then yes. you would likely have extra fees.That was for 60% LTV, same date as mine!


I think you've been misinformed. If you are switching to First direct then you'll need to pay for a solicitor as you're switching who you're borrowing your money from thus a new contract will have to be drawn up.

if you're just getting a new deal from First direct then you wont need a solicitor.
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