First Direct

magic_genie

I'm presently with the Halifax at a rate of 4.74% on my mortgage the payment is £350 pcm to the Halifax, I owe 52k, value of my property is 130k.

I want to remortgage in order to borrow 7k, for a deposit for a second Buy to Let that is costing 50k. I just spoke to the Halifax, they won't lend me the money, on the grounds that I want it for a deposit for a house, I don't really understand that. Anyway...

I was on the phone to First Direct last night and whilst I was on they invited me to apply for one of their mortgages, so I did, as I like First Direct very much.

I told them what I've written above in the first line and after many questions, checking my outgoings etc, ensuring I can prove mortgage payments on my first Buy to Let, they approved the mortgage.

It's a "Variable rates -- Apply this month and you'll benefit from our great rate offer of the Bank of England base rate until 1 January 2006, currently 4.75%", offset, interest only mortgage, they explained you pay the interest (@£250 inc. 7k borrowed) and the capital (only if you want to) which would take it up to @ £380.

I wondered two things really:
1. What are your thoughts on this.
2. Does anyone mortgage with First Direct?

Thanks for reading, hope to hear from you, kind regards
Alex

mrcow

My only real concern with the above is that your current deal is below base rate, so it looks like a special offer? If it is, have you looked into what repayment charges there will be from Halifax to switch mortgage? ie. Are you on any tie ins with Halifax? If you're still on the deal with them, then the penalties could be high? and could throw the whole deal out?

Apologies if you've already looked into this!

magic_genie

No need to apologise, good point. I should have mentioned. My deal runs out at the end of Sept, penalty is £150.

kind regards
Alex