Bank of Ireland v First Direct

w00519772

My Bank of Ireland mortgage expired at the end of last month so I am now on their 4.75% variable rate. I did a search on Money Spermarket.com and found the best deal was with First Direct i.e. 1.98% no fees for five year fix. The bank of Ireland rate is 2.4%.

I have never switched before (my mortgage started at the start of my last five year fix). I have a few questions:

1) Would you switch to save 0.42% interest per year?
2) Is it normal to switch without a mortgage advisor?
3) It appears First Direct do not offer mortgages via mortgage brokers i.e. the mortgage broker I spoke to told me this. Is this a red flag.
4) The BOI mortgage started in July 2014 and expired in March 2019. This is not five years. Is this normal? Do I have a case to ask for my current fixed rate to be extended to avoid the extra £60PCM in interest now I am on the variable rate. I realise the answer is probably no!

I like the first direct mortgage because you can make unlimited overpayments i.e. I could in theory pay off the mortgage after five years (highly unlikely!).

Thrugelmir

1. Depends on how much you owe. All costs need to be considered not just the interest rate. Remortgaging could cost you a £1k in fees.

2. Nothing abnormal. If you are comfortable with everything that's involved.

3. No. How a lender markets it's products is internal policy.

4. The actual term would have been specified in your mortgage offer. Products aren't strictly the period advertised. This fits in with lenders offering products in tranches over a period of a few months.

While paying the variable rate overpay by as much as you can.

mdori003

Thrugelmir has answered all your points better than I could -Just for future reference, you can start to get a remortgage in place well before going onto the SVR - I'm with BOI and am staying (although i have sub accounts so I couldn't really move) but I had my remortgage in place 4 months in advance to avoid going on SVR.

w00519772

I have noticed that my 5 year rate with first direct is not listed in the Times Money section. It has a section displaying best savings accounts; ISAs and mortgage. Some of the mortgages listed are not as competitive as mine. Does anyone know why this rate is not listed?

I have noticed that the First Direct two year fix is listed.