Tesco vs First Direct Mortgage?

kilby_007

Hi,

We're currently looking at properties with a view to making an offer in the next few days (we've now sold our property), but I'm a bit behind with getting a mortgage DIP. I've done a fair bit of searching online and the two best deals I've found are with Tesco or First direct as below:

5 Year Fixed deal (80%LTV) at 2.59%

They both have identical figures for comparison except for the set up / valuation / booking fees where First Direct come up a few hundred cheaper.

My question then - Does anyone have any experiences with either lender (or both)? Which is most likely to be a faster/smoother application process?

Bearing in mind our credit scores are excellent (nothing bad on there at all). Experian "score" 999 (not that it means a lot). Excellent credit history. Mortgage in mine and partner's name - I earn enough to borrow 60K more than we're asking for.

Also, when I called Tesco enquiring about a DIP they said I just had to apply online (with the option of making an appointment with their advisors first but I know which product I want and that I can afford it). When I do that it gives a quote and Key Facts Illustration with the option to then go on and get a DIP. Is this the point where they'll do credit checks etc? If so then I need to make sure I'm going with the best lender, hence the above questions.

kilby_007

Anyone any thoughts? Ta :-)

kingstreet

Two direct to lender offerings, so no.

Sorry.

kilby_007

kingstreet wrote: »

Two direct to lender offerings, so no.

Sorry.

Sorry I don't quite understand where you're coming from?

Spangled

He means that with both those lenders you can only apply for a mortgage directly to them - ie you can't go through a mortgage broker. So as a mortgage broker then he can't really give an opinion on their processes...

I've never had a mortgage with them but from everything you read on this board (and elsewhere), First Direct are a very picky lender - but their rates appear pretty competitive...

Good luck!

anselld

Whilst the brokers cannot comment on these two offers, I am sure they would by now have stated "there is better if you see a broker" if that were the case.

I cant comment on Tesco but FD seem a very good and efficient lender. (Mind you I got in before the new rules.). They are picky, but that is presumably how they keep costs down by cherry-picking the low risk loans.

Personally I wouldn't bother with DIP, it seems pointless if you know what you can afford against the lenders criteria already.

amnblog

Pick your own product and it is your responsibility what happens.

You may find a recent client of FD or Tesco or (perhaps two or three) that can share their experience. It is still pot luck if it works for you.

Our poster above is referring to experience nearly two years ago so the problem of applying direct is evident even with the best of intentions from fellow forum users.

Westminster

I need to make sure I'm going with the best lender

If this is your goal - do you think a rushed DIY job with unregulated advice from strangers on a forum is the best way to do with such a major decision?

Carnival789

If it helps, in September i took additional borrowing with First Direct and have just gone through the re-fixing process with them which kicks in in a few days time.

The additional borrowing was quite hard work if I'm honest and we were mis-advised and mis-informed at times which was quite frustrating. Their rates are good though (the best we could find) so when it came to re-fixing we figured we may as well stay put. We ended up switching products twice during the process (and ended up receiving/returning 3 sets of offer documents as a result!) but FD didn't seem to mind. The re-fixing part seems to have gone very smoothly, which is more in keeping with my previous experiences with FD.

Id be happy to recommend them, one of the things I like the most is that we can make unlimited overpayments during the fixed term (as long as we don't repay in full).

Good luck with whatever you choose!

bunty109

I'm with First Direct and I can't recommend them highly enough: they're used to dealing with everything by phone and I've found them quick and efficient. Due to review our mortgage soon and I won't look elsewhere as both the rates and service are great (re-mortgage was a sinch last time too!).

y3andy

Agree with Carnival. We are part way through a remortgage with First Direct. We chose them because they have a great rate (1.89% currently for our LTV) but most importantly to us you can make unlimited overpayments which we plan on doing regulary. You need to open a current account with them to pay the mortgage from also but they give you £100 for swapping to them,

Their customer service seems good too. Rang them two or three times and you get straight through. No having to key your way through menus before you speak to someone.

No experience of Tesco though but First Direct seems to generally have a good reputation