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First Direct Fixed Rate Mortgage
Tainshy
Posts: 2 Newbie
I phoned First Direct to ask about the fees for cancelling my current fixed rate mortgage at 5.49% and transferring to their current fixed rate mortgage at 2.99%. The man very nicely pointed out that as I took out my mortgage before 2006 that I had a mortgage rate guarantee. What's that I said. The variable rate is guarenteed to be no more that 1% above base rate. After a moment or two of consideration I lept at the change to the variable rate. So for an early exit fee of 2% I have changed from 5.49% for the nexy 26 months to 1.5% variable. The maths say that it will take 6 months to pay back if the rate stays the same.
So the moral is. If you have a fixed rate FD mortage see if you have the interest rate guarentee. It could save you a packet.
In the mean time I'll watch the fixed rates and hopefully pick a good time to fix my rate again.
So the moral is. If you have a fixed rate FD mortage see if you have the interest rate guarentee. It could save you a packet.
In the mean time I'll watch the fixed rates and hopefully pick a good time to fix my rate again.
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