Exit fees? - 1st Direct Life Time Tracker

andyg_prs

Hi, I've seen a good deal with First Direct (who I currently bank with) for an 85% LTV loan at 3.49% above base rate tracker with a £99 set up fee.

Loan amount would be £212,500

What I can't see (and would rather not have to spend hours on the phone to First Direct to apply and find out) is what the tie in is.

If it's a lifetime tracker rate, does that mean I'm tied in for the lifetime of the mortgage by early redemption penalty clauses?

Any ideas out there how much the penalty is? Clearly if interest rates rise over the next few years a 3.49% tracker is not going to be very attractive so I need to be able to get out of the deal.

I know their offset mortgages don't have early redemption penalties but I can only afford 85% LTV which is too much for those deals.

Their fixed rates are also too high for me.

Any advice or alternative mortgage ideas would be gratefully received.

Thanks,
Andy

_Andy_

andy - the fees are clearly stated here

http://www2.firstdirect.com/1/2/mortgages/understanding-our-fees;jsessionid=0000iWK_IhkDRCpsCXKlhSwvNc9:11jmjm8n8

andyg_prs

Ok, I feel quite stupid now. That said, I may as well carry on. Would you interpret that as meaning that only the Closure Fee would apply eg £149? If so, that is nothing and the deal still seems like a good one.

Cheers,
Andy

_Andy_

Hi Andy - don't feel stupid! Yes that's my understanding. All fees specific to your product would be listed on the KFI when you get a quote (Key Facts Illustration).
Hope that helps