Advice Wanted - First Direct 5.15% 10 Year Fix

allan673

hi, my mortgage deal is up next month, ive just seen a 10 year fixed rate offset deal with first direct.
this looks a good deal, and i am prepared to be tied in for 10 years as i will not be moving from this house.
i just wanted your opinions on the 10 year fixed offset mortgage as i know very little about them.
any help is appreciated, thankyou !!


i am also aware that you have to open the first account with them, you can still use your original current account, mines barclays, and just set up a standing order every month to go into the first account to cover the mortgage.

hangover

looks like a good deal to me too ... although I'm looking at the very similar 4.99% 5-year fix

I guess all the usual caveats apply - the advantage is that you have the security that your rate will not increase over that period, the possible disadvantage is that you will not benefit from any sharp falls in interest rates, should they occur, and will not be able to pay off your mortgage or switch to another mortgage provide over that period without incurring substantial early redemption fees

however, it's worth noting that the mortgages are fully portable, so if you did need to move house it would not be a problem as long as your mortgage remained with First Direct

the offset facility is nothing special - it's really no different from flexible mortages which allow you to make overpayments and borrow back ... the advantage for me is that I think it is much easier to manage when the money is all in different pots (and I prefer the idea of seeing a savings account with a positive balance which I can gradually add to and reduce my mortgage payments, rather than just a huge debt which you slowly chip away at)

PeteMc

I also think it's a good deal, with all the caveats etc.

In fact I've reserved one today! Absolutely painless for an agreement in principle.

They only ask for the interest to be repayed each month on DD and the capital is a standing order, which of course you can overpay.

allan673

PeteMc wrote: »

I also think it's a good deal, with all the caveats etc.

In fact I've reserved one today! Absolutely painless for an agreement in principle.

They only ask for the interest to be repayed each month on DD and the capital is a standing order, which of course you can overpay.

im gonna ring tomorrow to arrange the 5 year fixed rate of 4.99%.
i spoke to the financial advisor today who arranged my last mortgage and he basically said go for it as he couldnt really compete with it. he had a 3 year fix at 5.89 with no fees, but even if i pay the fees with first direct it pays for itself in the 1st year.
plus i like the 5 year fixed rate as i want to know what im paying and 4.99% is very good in my opinion.
anyone else agree with this?

chewit

i've gone for the 5 yr fix. Been with FD for 9 years and cannot rate them highly enough.

If only I had the same confidence in the market as I did in them......


Very very very good customer service.

KTF

Do you get free legals with the FD deals? Cant see any mention of it on the site.

allan673

KTF wrote: »

Do you get free legals with the FD deals? Cant see any mention of it on the site.

yes free legal costs by them, valuation was around £95 they said
tel 0800 48 24 48

honest_guv

Just filling in the forms as we speak for the 10 year fixed. I was in the process of applying for the West Brom 10 year fixed at 5.39, but it was taking ages, and I could never get through on the phone, when I saw the FD rates. I already have my current account with them, so it's very quick and easy to set up the mortgage.
As others have said, the customer service is excellent (you rarely have to queue on the phone).

I'm still don't understand the maths of working out the benefits of offsetting, but as far as i could find this is the best 10 year deal, so the flexibility of it is an added bonus.
The fees are £299 (product fee) + £299 (offset fee) + £99 valuation (for standard remortgages, there are different rates for new buys, and if your house can't be valued from a 'drive by'), and free legals for remortgages (not sure if you're a FTB), which is also less than the £999 that WestBrom wanted.

I'd be interested in anyone elses experience, or if anyone else can find a better 10 year deal at the moment.

Dan_Collins_2

Longer term money is very good at the mo. I do not do many 10 fixes, I think they are a good idea but not everybodies cup of tea. I have done a few 5 years at the mo, Nottingham have a 5.8% no fees what so ever and Nationwide have a 5.63% with £499 admin but first Direct look like they have some funding to burn!

Offset is ok if you use it, i would prefer to overpay with a borrow back facility. Over paying saves you more in most cases.

evergreen

How does offset work? Can you overpay?

ixwood

How's that then? Isn't offsetting overpayments effectively the same as overpaying?