First Direct To Cut Interest Rate on All Mortgages

paulq

We are currently in the application process with these. We have secured their 4.79% 2 yr Fixed! Once the appplication is completed and we are offered the mortgage can we request these new rates?



First Direct cuts rates on all standard and fee-free mortgages

Friday, 27 July 2012 3:45 PM

First Direct have announced that they are to cut interest rates across the whole of its standard and fee free mortgage range.


First Direct has announced cuts to rates on their mortgages


This means that its two-year Fixed Rate Repayment Limited Edition mortgage now has an interest rate of 4.29 per cent for those with a 90 per cent loan-to-value (LTV) ratio which comes with a £999 fee.

A further 0.50 per cent rate cut will be made on first direct’s five-year Fixed Repayment mortgage. !

Its Tracker Repayment Limited Edition product charges 2.79 per cent for those with a 65 per cent LTV with a fee of £999.

Meanwhile homeowners with a 65 per cent LTV can take advantage of a low fee of £499 on their two-year Tracker Offset mortgage which charges 3.19 per cent.

Ian Bartholomew, Senior Mortgage Product Manager at first direct commented: "first direct is renowned for providing market-leading customer service and we're happy to help borrowers looking for a better deal by cutting our mortgage rates at a time when other household bills are rising."


http://m.myfinances.co.uk/mortgages/2012/07/27/first-direct-cuts-rates-on-all-standard-and-fees-free-mortga

trevorsminted

I would think a deal is a deal - same as if they upped the % would you pay more so answer no you made a deal accept it!

paulq

When it hasn't even been processed? It's like buying an item in a retail store and it dropping in price before delivery! Trevor you are a tool.

Gentoo365

That press release is not really worded in the 'fairest' way.

I have a document in my hand (just checked) that states that their rate was 4.19% (2 year fixed, 90% ltv £999 fee).

They state that (my emphasis)

first direct has cut the rates on all of its standard and fee free mortgage range. The changes include cutting rates on all 5 Year Fixed Rate Repayment mortgages by 0.50%, and lowering rates on some Limited Edition mortgages.

As a result the following rates will appear in the best buy tables this weekend:

90% LTV 4.29% 2 Year Fixed Rate Repayment Limited Edition - £999 fee
65% LTV 3.19% 2 Year Tracker Offset - £499 fee
65% LTV 2.64% 2 Year Fixed Rate Repayment Limited Edition - £,1999 fee
65% LTV 2.79% Tracker Repayment Limited Edition - £999 fee

http://www.newsroom.firstdirect.com/press/release/first_direct_cuts_mortgage_rat_5

The top one has actually increased not decreased. Cannot comment on the rest.

Anyway, no you cannot change post completion. pre-completion you may be able to though. However you will have to forfeit any fee you have paid, and pay another fee if required. It may also take time that you don't have.

You accepted the rate when you signed the mortgage offer document. You also paid your fee to 'book' that rate.

You can think of the fee as paying for an option to take the mortgage at that rate. It rates change you can then decide if you want to exercise that option or not.

The comparison with online retailing is not relevant. The nearest equivalent I can think of is paying the deposit for a holiday, then a cheaper one comes up.

Gentoo365

The mortgage you probably had was the "2 Year Fixed Repayment - Limited Edition - Fee Free".

It's now 4.89% so you have got a better rate than you would have anyway.

If you want to ring them up and ask to pay an extra 0.10% then feel free.