First Direct Offset Mortgage

disney_cjd

i went for the no fee no hassle tracker which was 0.79 over base I think. I liked it as it cost me nothing to change

disney_cjd

base rate down to 3% wow!!!

3.49 for all of you

shazbat69

I have had a variable rate mortgage with First Direct for about 10 years now. Before the base rate was reduced by 1.5% a few weeks ago, my interest rate on my mortgage was 5.5%.

It is STILL 5.5% as First Direct hasnt reduced the mortgage interest rate at all, but they immediately reduced the savings rate by the full 1.5% down to 2.75%.

Have any other banks refused to reduce their mortgage rates after the base rate reduction?

Anyone else with a First Direct variable mortgage in the same position?

maninthestreet

FD are part of HSBC. HSBC did not accept any money from the Government as part of their rescue plan for the banking industry. Therefore, they don't feel obliged to comply with the Government's request to reduce their lending rates in line with the reduction of the BOE base rate. However, reducing their saving rates whilst not reducing their lending rates does smack of having their cake and eating it.

Locoblade

Its also worth bearing in mind that FD's SVR rate has been the lowest on the market for a while before the last BoE cut, so even if they don't cut it at all, its still reasonable compared to some lenders that have now made a cut.