Should we book Mortgage with First Direct???

JOBEN

Hi
Our fixed rate mortgage is due to end in October and I have started looking at new deals.

We bank with First Direct and can pay a booking fee of £199 to reserve a mortgage at an interest rate of 3.29% for 2 year fixed or 3.99% for 3 years.

I think this is a good deal what do you think?? Oh by the way we need to borrow £67k

thanks in advance for any advice
Jo

hcb42

decent rate

Crashandburn

Good deal but if their offers are only valid for 3 months, then you'll have paid £199 for nothing. Worth checking how long their offers are valid for.

Also, find out if its a 2 year fixed or say fixed till a certain date ie April 2013. If switching in October, then it would be an 18mth deal based on the later

casper_g

I'm in the early stages of applying to First Direct for a mortgage as an FTB, and spoke to them on this very question yesterday (although the fixes they were offering me were not at such good rates as yours).

I was told the booking fee would reserve the rate for 6 months.

sarahcoles_2

Ya decent rates. You can

Voyager2002

Do your sums carefully. While the rates are reasonable, the amount you are borrowing is small (lucky you) so the fiexed charge might outweigh the benefit of the low interest rate.

afro_2

Will the fix be for 2 years from the start date (Oct 11 -> Oct 13) or from now? (so Oct 11 - April 13) - So only 18m (or 30 m for the 3 year offer)

This might change your calculations too.

casper_g

afro wrote: »

Will the fix be for 2 years from the start date (Oct 11 -> Oct 13) or from now? (so Oct 11 - April 13) - So only 18m (or 30 m for the 3 year offer)

This might change your calculations too.

Checked this with FD yesterday too: my understanding is it would run from the start date of the mortgage not the date you paid the reservation fee.