First Direct - Best 5 Year Fixed Product at 3.89% and £99 Fee?

Ladyshopper

Been looking into fixed rate mortgages today. Currently on SVR with Halifax. Got 13 years and 11 months left with a balance of £89959. House bought for £227000 3 years ago, estimate it to be worth around £200000 now with recent sold prices, so plenty of equity.

Found First Direct 5 year fixed, rate for 65% LTV which I easily have even if house is worth a bit less than I think. Rate is 3.89% and only fee payable is £99. I could afford to take term down to 12 years from the calculator, so would knock almost 2 years off as well.

I anticipate rates going up this year, and think this is probably the best time to fix. As its only 0.39% above the rate I've got now, I think thats pretty good.

Has anyone found anything better? Am happy to tie in for 5 years, and should I come in to some money (I wish :rotfl:) there are unlimited overpayments. I have a secure job, so not worried about that.

Any thoughts please?

penwise

I am not an expert but that rate sounds good to me (especially since the fee is only £99 and your mortgage is relatively small). My OH has currently just got an offset tracker mortgage with First Direct and they have been great to deal with. I have also heard positive comments about them from others on this forum.

whatyadoinsucka

I've been looking the last few weeks at the 5 year fix. first direct / hsbc seem to have the best offers by far in my experience too..

I'm gonna hold off a fix for another year and see what happens, will be down to 70% LTV by November, assuming current overpayments we've been making and a base rate rise to 2.75% mid year, so if it stays the same it should be even lower..

a fix any shorter and you are likely to come out in a worse situation in 2 years time, i think a 5yr is the only option if you not looking to take a risk on a variable

If base rates shot up i think the government may say to the banks play fair and cut your rates, to stop the current exorbitant margins they are making

Gorgeous_George

If you think a rate rise is imminent, fixing at 3.89% would be a good idea. Even if rates don't rise, you won't lose much paying just 0.39% over your current rate.

whatyadoinsucka might be being a little hopeful if he expects the government to ask the banks to play fair.

GG

leni

We comes out of a great discount trackers with Halifax in May but as we expect our first baby in May too we have chosen to go fixed.

The 3 best options I've been are First Direct, HSBC and Natwest for us with a 49% LTV

But the First Direct tops them all - go for it!:T

Ladyshopper

Thanks all, sounds like I found a good one then, just wanted to double check!

I've been on SVR for a year with Halifax, prior to that I was on their fabulous tracker which was 0.09% above base rate, although interest rates initially rose after I took it out, I had around a year of very low payments which allowed me to do some overpaying.

When I took the mortgage out 3 years ago I took it over 24 years, if I go for this one which I think I will, I will have halved it down to 12 years in 3, so am pretty pleased with that.

dimbo61

I would be carefull about reducing the term !
What you could do is set the term to say 15 years but set up your Direct debit so that its paid off in 12.
That way if things get tough you can always reduce the monthly mortgage payments back over whats left of the 15 year term.
If you do come into money you just make a lump sum overpayment