First Direct Offset criteria change

Thrugelmir

maninthestreet wrote: »

The financial industry does not reward customer loyalty.

Lets be honest neither do consumers. As cheapest price is often most important factor in any financial decision. Even if its only for short term gain rather than a more measured long term view.

bingham40

goosander wrote: »

I'm pretty annoyed to be reading this since I changed banks to First Direct last year because I wanted an offset mortgage (house purchase fell through & mortgage offer since expired).

I wonder if their is wiggle room if you have a large deposit?

Theres no wiggle room. The deposit and loan amount are separate criteria. The 50k single or 75k joint applicant salaries are criteria all on their own. I didnt even get to discuss how much I wanted to borrow with them as the first question was about my salary.

bingham40

Thrugelmir wrote: »

Lets be honest neither do consumers. As cheapest price is often most important factor in any financial decision. Even if its only for short term gain rather than a more measured long term view.

Hmm, in my case this isnt true, there were and are better options available for me financially but the FD route offered me an easy way to manage my finances all in one place. I have 7 savings accounts that were all linked ot my offset mortgage, each was earmarked for specific things - car costs, house emergencies, holiday fund etc etc and I found was a relatively easy way to keep track of my money whilst not having to worry about whether it was making reasonable interests rates or not.

warmsnow

I fit the higher income criteria, and have had an offset mortgage with first direct for four years. I called up today asking about a new mortgage if I move and they declined me. That was for both the 5x salary I initially asked about and also their 'standard' 4.5x salary. Proposed loan to value was 61% i.e. 39% deposit. Methinks they don't like offset mortgages anymore full stop. I wish they'd just put it on their website, would have saved me an hour and a half of my life. If anyone who works at firstdirect is reading, this will very likely simply lose you your most sensible (if not richest) customers

Thrugelmir

Why do believe that 4.5 times salary is standard? Is that on a joint salary, any dependents?

dimbo61

Why not try YBS or Barclays as I think they both do offset mortgages

warmsnow

Yep that's true standard multiple of salary is probably 3.5x, but on the call the advisor said 4.5x was normal. Maybe she meant common rather than normal. One person, no dependents. And yeah I'll likely try Yorkshire or Chelsea bs next

Gambler

bingham40 wrote: »

Theres no wiggle room. The deposit and loan amount are separate criteria. The 50k single or 75k joint applicant salaries are criteria all on their own. I didnt even get to discuss how much I wanted to borrow with them as the first question was about my salary.

Does the £50K have to be basic salary?