First Direct cuts fixed rates

samizdat

Just a heads-up that First Direct are announcing cuts to their fixed rate mortgage deals at 3 p.m. today. I don't know what the rates will be.

lisyloo

Thanks a lot for lertting us know.
I already have a rate booked but I'm aware I can change it (with loss of the booking fee).

maninthestreet

What about their SVR ?

Locoblade

Many thanks, any ideas where it will appear first? Do they update their website immediately or is it a press release type thing first?

samizdat

No idea where they will first publish the rates. I was on the phone to them about a remortgage this afternoon when the rep told me that this would be happening. He only mentioned fixed rates and specifically said the offset tracker would be unaffected. He didn't mention the SVR but I would doubt they would cut that given where it is versus the competition.

lisyloo

What about their SVR ?

I have no inside knowledge but I doubt this will change.
Lenders have recently been cutting deals very selectively.
Bearing in mind where the SVR is I think this is most unlikely.

Locoblade

FD's website has now updated and the 5 and 10 year fixes have dropped to 5.95% with same arrangement fees etc. The 2 and 3 year haven't changed from what I can remember, still 5.95 / 5.98.

samizdat

I agree, Locoblade, it is just the 5 and 10 year rates that have changed. 5- year drops from 6.29% and 10-year from 6.19%, both to 5.95%. Arrangement and booking fees are unchahanged.

medic1978

Lisyloo

Are you going to be changing your rate? How far into the remortgage process are you? I also have a rate booked- had the valuation done today. Not sure if i can still change for the new rate and what fees i will lose- will have to check

2latenow

Went to see the C&G in-house person today to see about my own renewal ... I'd been comparing against FD.

I was pleasantly suprised to find C&G had also dropped their rates - 5yr being 5.75 @ 995 fee or 6.15 @ 0 fee --- competetive with FD (slightly lower rate, slightly high fees). Main difference I see if that C&Gs SVR is still a comparative whopping 7% (vs FD's 6%) which affects the overall comparison cost. But so long as we ensure to re-fix early we shouldn't touch the SVR.

Locoblade

Just had a look at C&G as FD is currently my favourite to remortgage with in the next month or so. Its worth mentioning though that those rates you've mentioned only apply if you have less than 60% LTV, whereas FD's is 80% which we thankfully fall under just about, but not 60% (or even 75% )

C&G is also not offset which reduces the effective rate/monthly payments a little even if you haven't got any savings, due to offsetting against your current account if nothing else. In my case (on a £175k mortgage over 21 years), having the majority of our combined salaries sitting in the account for most of the month should reduce the effective rate by 0.1% and save about a tenner a month in interest.