First Direct mortgage rates cut and cheaper fees

Barry_Jive

Just registered to say thanks Sebtomato, had a aip but rang First direct and got the new rates. Saved me £400 up front plus 0.1% from an already competitive mortgage.

I'll also mention that i've been impressed by First Direct throughout my mortgage application.

sebtomato

mantamark wrote: »

Ah right, so because we are moving home we have to pay for the bigger valuation?

Yes, you won't be able to pay just for an external valuation if you are purchasing a new house, or for a flat (new purchase or remortgage).

mantamark wrote: »

Is it worth going for the homebuyers or structural over the standard?

I guess it depends on the condition of the property, and if you want to cover yourself in case of issues found. Standard valuation does not seem to cover much at all, and is just to confirm to the lender that the property value is around what was offered. Given the money to be invested, I guess the least advisable is home buyer report (takes 3-4 hours to be done).

mantamark wrote: »

Are these paid up front, or added onto mortgage?

Paid upfront. First Direct asks for credit card details to pay for those, since they are due before a formal mortgage offer is received. The arrangement fees are also not added to the mortgage, but only paid when the mortgage is drawn out.

pardal51

Does anyone know whether you have/is advisable to have a current account with them before applying to the mortgage?

Thrugelmir

These product fee rates are for a limited time period.

Before you ask not I don't work for HSBC. However I assume there is a limited tranche of funding available before they'll revert back.

michaels

I took out a offset tracker with them in middle march - I have now had to 'remortgage' with them twice as each time they made a new lower rate available that was attractive even with the fee - here's hoping the margins continue to fall...

Although tbh all other things being equal I would take the hsbc discount 1.99 rate at the moment but given the economy I would rather be on a lifetime flexible deal that be looking to remortgage in 2 years.

waveneygnome

I am/was in the middle of my application with FD for a 2.79% fee free offset tracker. (I really liked the 2.49% offset, but didn't like the £999 fees)

I have just rang them to see if they can move me over to the 2.49% deal with the £99 fee (plus £99 val plus eventually £145 exit fee)......and after waiting on hold for 15mins.........came back and said YES.

Thankyou to the original poster......you have saved me over £500 per year in interest as I would not have noticed the deal myself.

sebtomato

pardal51 wrote: »

Does anyone know whether you have/is advisable to have a current account with them before applying to the mortgage?

I didn't have an account with them before applying, and it seems to make no difference in the application speed. However, they are forcing me to open a current account, since I am applying for an offset mortgage, but I don't have to use it if I don't want to (I will, to benefit from the offset). They will also pay me £100 to switch from my bank, which I was getting tired of anyways (Barclays), so I am happy overall.

sebtomato

Indication on timescales:

* Applied for the mortgage on the phone on Thursday (call lasted 30 minutes)
* Received the papers on Tuesday last week (3 days later), with agreement in principles (subject to information provided being correct)
* Sent the papers back on Wednesday (along with payslips etc)
* Got a call today (Monday, 2 days after they have received the forms): they wanted to ask specific questions about items on my payslips, some debits on my current account etc. Call lasted about 10 minutes, and they then confirmed the mortgage was approved. Supposed to get a call about arranging a valuation/survey within 3 days.

All moving quite fast.

I was warned by a mortgage adviser (who can't access FD mortgages anyway) that FD would be very slow, but does not seem to be the case. I was also expecting them to be flooded with applications, due to their competitive rates.

pardal51

Not sure whether I should post on another forum/thread, but....

I am a FB. Went to LTSB branch (bank with them) to have an idea of how much they could lend us (no request for AIP, i.e., no credit search): they "can" lend us 72% more than what we want/need. So we are "somewhat" safe.

My noob question is: I am slowly viewing houses and want to find the best to suit our needs. Therefore I don't want to rush at all, especially considering that the market seems to be quiet. Do I need to apply for a mortgage without even having found/put an offer on a property? or Do I only apply once found/offer accepted? Still a bit confused with AIP and Mortgage.

Help is appreciated

sebtomato

pardal51 wrote: »

Do I need to apply for a mortgage without even having found/put an offer on a property? or Do I only apply once found/offer accepted? Still a bit confused with AIP and Mortgage.

Help is appreciated

A mortgage is only formally approved once a survey is done, and therefore you need to provide an address. Typically, you apply for a mortgage once your offer is accepted.

If you are still looking for a property to buy, the best you can do is get an AIP for a greater amount than you are planning to borrow. This is just to confirm that you should get a mortgage when required.