First Direct Offsetting Overdraft

Locoblade

neil9313 wrote: »

Are you sure there is not an exit fee of £149 on the 0.49 rate?

Nothing on my offer (KFI) information, says Administration / Closure Fee £0 and no other fees listed.

neil9313

Locoblade wrote: »

Nothing on my offer (KFI) information, says Administration / Closure Fee £0 and no other fees listed.

Take it quick Mine has the £149 exit fee, and it does say on the site as well in the T & [EMAIL="C@s"]C@s[/EMAIL] guess you got in early or they missed it :T

Locoblade

Cool, sounds like I got in at the right time then!

jiggy2

Locoblade wrote: »

Cool, sounds like I got in at the right time then!

yup definitely.

i was told about the £149 closure fee and the valuation fee of £99 was payable as well on the 0.49% over base (i called on 14 September). That was the one of the main reasons for me going for the 0.79%. Other was i was planning to fix in a few months (if rates go down as I think they will).

by the ways i think your spreadsheet is great and should help lots of people.:beer:

Locoblade

jiggy2 wrote: »

yup definitely.

i was told about the £149 closure fee and the valuation fee of £99 was payable as well on the 0.49% over base (i called on 14 September). That was the one of the main reasons for me going for the 0.79%. Other was i was planning to fix in a few months (if rates go down as I think they will).

by the ways i think your spreadsheet is great and should help lots of people.:beer:

14th September, as early as that? I cant remember exactly when I called up to switch, but it must have been around that time. They never mentioned any additional fees (other than the £999 obviously), and the docs back that up, so either the people you spoke to were mis-informed or I slipped through the net because I was originally on the +0.99% rate before they dropped that one to 0.79%.

Cheers for the comments on the spreadsheet, its been a fair amount of work but quite interesting, so glad others can get use out of it. This thread has highlighted another tweak for that though, that I need to take exit fees and ERC into consideration with the break even month though, as previously it only took into account the capital balance. :beer:

bradgirl

InMyDreams wrote: »

The question is, if you actually *did* use up to your *free* overdraft limit (which won't be £1000), would it really be free anyway, or would that negative balance be negatively offset against your mortgage (and other offset savings) meaning that in practice you do actually pay interest on it at the rate of your mortgage. I strongly suspect it would be negatively offset, but I don't know for sure, meaning that even the 'free' part of your overdraft isn't truly free. Even if that's not the case and it really is free, is it worth the risk of slipping into the 15.9% interest rate on the whole lot?

Does anyone know the answer to the question raised above? i.e. does the free part of your overdraft actually end up being negatively offset against your mortgage - making it no longer free??

jiggy2

bradgirl wrote: »

Does anyone know the answer to the question raised above? i.e. does the free part of your overdraft actually end up being negatively offset against your mortgage - making it no longer free??

From FD tems and conditions:

7) Interest and Account Combination

1. We will calculate interest on the outstanding debit balance of your loan facility daily;
2. Subject to paragraph 9(e) below, when calculating interest we will combine the debit balance on your loan facility with the debit balance(s) on your other Combined Account(s) and we will deduct from this any credit balances on your other Combined Account(s) to give your Net Debit Balance and we will only charge you interest on this sum;

so if the first account with the o/d is a combined account (linked for offset) then yes, you in effect end up losing the interestfree element.

Hope that helps

Jig