First Direct Fixed 5.25 fixed offset

sexy_fufu

Hi,

Im hoping someone can explain this to me.

This is a fixed offset mortgage, if i dont use any money to offset it by is it just like a typical Fixed mortgage.

This is the best rate i have seen for a fixed

I dont need to use the offset and i can still overpay if i want ?

Im not to sure about offset mortgages.

I had a broker come to my house tonight and i felt as thou i was being fobbed off, he also wanted to charge me £900 in fees when found a mortgage plus get any comission of the companies.

Also all his estimate quotes were well over what i have found so far, he didnt give me certain figures. But i just felt as thou i was gonna be ripped off if you know wot i mean.

Any advice would be greatfully recieved.

homer_j_3

Yes it will work like a normal fixed rate.

You do not need to pay a fee for advice and whilst you may have felt ok with the fee had the adviser been fully open and honest with you, I would suggest that this one doesn't sound as though you have faith or confidence which means no trust. This is wrong from the outset.

suby786

first direct - this offer is if you have a max 80% LTV as i wanted to use it for mine, but i have a 90% LTV which most lenders allow. also they are well tight with income multiples... so dont hold ur breath if your like me struggling

dweeby

sexy_fufu wrote: »

This is the best rate i have seen for a fixed

I dont need to use the offset and i can still overpay if i want ?

Im not to sure about offset mortgages.

Firstly, I'm no expert. But, I'm signing for a First Direct mortgage today.

The best deal our mortgage advisor could find was 5.68% for 5 years, First Direct have a 4.99% for 5 years. Evidnently First Direct mortgages are not available through brokers.

I had some reservations about offset mortgages, but I've very much dispelled them. Firstly, the First Direct is saving me loads, in set-up cost, interest rate and valuation fee. Secondly, if you set up a direct debit into the First Direct offset account for the monthly payment they told you - then its just like a standard repayment mortgage. But... you can overpay anything with no penalty, you can withdraw overpayments at anytime with no penalty, if you do overpay - you pay less interest.

As I understand it (and I'm not 100% on this), in times of absolute desparation (eg if you lost your job), provided you met the interest only part of the payment, they'd be happy and not boot you out of the house.

Its a no brainer for me...

Strapped

Sounds like a good headline rate, but what are the set-up costs?

InMyDreams

Strapped wrote: »

Sounds like a good headline rate, but what are the set-up costs?

For the 4.99% for 5 years, there are two £299 fees, one payable when you apply and one added to your mortgage. Plus you have to pay £99 valuation (for a remortgage). So all in all, I make that £700 fees. They are paying the legals.

I've signed up to this, but I've just realised that, having got the MIP and paid the first (non-refundable) up-front £299 fee, they haven't yet credit-checked me. They are going to do that on receipt of all the signed papers. So whilst I'm not anticipating any issues, presumably if they were to decide to decline my application, I would have lost my £299. Could this be the catch everyone is looking for?

PS... the details are here... http://www.firstdirect.com/mortgages/rates.shtml

dimbo61

first direct can pick and choice who they want at these rates
80% LTV and 2.5 times joint income with a good credit history
fees of £700 and offset facility and phone / online account details
no branches !! remember NORTHERN ROCK and no brokers
it is one of the best deals on the market

allan673

seems to be the best 5 year fixed rate on the market at the moment, they also do a 10 year fix at 5.15% - is this a good deal? or is 10 years too long to be tied in for?

silvercar

It says you can overpay with no penalty but that there are 2% early redemption fees if you redeem the mortgage before the 5 years are up.

What happens if you have the mortgage completely offset before the 5 years are up, do they charge redemption fees? On what, the last overpayment or the amount you took out at the beginning?

The way it is structured, it seems that you may as well ask for a mortgage that is the lower of 2.5 times your income and 80% LTV and then repay the bit you don't need immediately. That way you have a surplus of funds available should you ever need a loan.

jiggy2

might be a daft question:

is the interest calculated daily/monthly on the First Direct offset mortgage?

thanks

gil13

Like you say, it does seem a tempting set of offers, I am putting numbers through the calculator even though I would have to pay a large redemption penalty on my current mortgage (needed a cheap fix at the time). When I work through the saving on the monthly payment each month over the 60months even allowing for my redemption penalty I would be better off. I also would stick about 10k as a start in the offset section and like you say you have the ability to overpay without penalty at any time, as long as you don't fully redeem and close during the fix period selected. No tie ins after the fix period. Not sure I am going to yet, but fixed rate offset over 5 at 4.99% and even the 10 at 5.15% seem pretty good to me, not quite the timing I want in a perfect world - but am tempted, question is will it be get even better soon or will it just get pulled once the allocation is done.