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Exit fees? - 1st Direct Life Time Tracker

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Exit fees? - 1st Direct Life Time Tracker

edited 30 November -1 at 1:00AM in Mortgages & Endowments
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andyg_prsandyg_prs Forumite
78 posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
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

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