First Direct Fixed 5.25 fixed offset

Nudgemod

I am very very tempted indeed, just a couple of questions? are there any hidden catches with these sort of deals, also can someone put in laymans tearms how it works, i am looking to change over deals in March and what i have just worked out i would be saving over £50 a month on my current deal. How do the re payments work? do i just set up a DD with first direct or something and pay the monthly ammount, and what is the offset part about?

thanks for any help, as you might be able to tell i am a dead head with these sort of issues

phead

InMyDreams wrote: »

Plus you have to pay £99 valuation (for a remortgage).

I was quoted £0 for the valuation, for a £250K value. I wonder if its related to house value? I kept it at the same value as 3 years ago just in case any fees were cost related.

fitzmum

Nudgemod wrote: »

I am very very tempted indeed, just a couple of questions? are there any hidden catches with these sort of deals, also can someone put in laymans tearms how it works, i am looking to change over deals in March and what i have just worked out i would be saving over £50 a month on my current deal. How do the re payments work? do i just set up a DD with first direct or something and pay the monthly ammount, and what is the offset part about?

thanks for any help, as you might be able to tell i am a dead head with these sort of issues

Yes, I'd be interested in the answer to this too. Our fixed rate ends May 31st and the Nationwide are currently offering 5.63% Fixed 5 yr

We don't have any savings so would offset be ok for us?

Thanks

sdooley

No broker will ever have HSBC/First Direct mortgage deals.

They have kept their SVR low compared to almost everyone else for decades too so ok if you keep the mortgage beyond the special offer deal.

TighterThanTwoCoatsOfPain

i have just reserve this tonight..

299 arrangement fee (includes land reg and sols fees) can be added to mortage, 299 booking fee, 99 "drive by" valuation if property can be seen from the street. and LTV is low enought, else 200 val fee.

You only pay a ERC if you close the mortgage.... mortgage is interst only, but you make (if you want!) captial payments by standing order to repay. You can make uplimited overpayments and was asked if i could repay to £10 balance but not close and was told yes...

I have a 10 year and a 5 year reserved fee free for 4 working days to review the paperwork... they will also allow you to "book" for £299 and hold the offer for 6 months.

You can borrow back any capital payments back to 80% LTV.

I cant find any flaws and have picked it to pieces..just have to be a disiplined(sp?) enough to make the capital payments..

TighterThanTwoCoatsOfPain

oh yeah, not sure if its a condition of mortgage, but think you my be expected to open a current account and pay your salary into it... not 100% tho as i already do.

moneywasternomore!

OK....as I see it, I can elect to make capital repayments...or not. I am about (June) to receive a lump sum in the region of £70k which I can either use to draw down my mortgage, or set aside as savings in an offset. PLugging the numbers into FD's calculator, there seems to be no benefit in paying the lump sum off the mortgage.

The question ref the capital repayments is because, in the short term, I ma taking a pay cut and moving from a favourable 4.5% rate; thus, this deal gives me the flexibility I need, at least on the surface.

Grateful for any thoughts - acknowledging that they are in no way binding!

sdooley

Yes that's the idea behind offset - any savings placed into the offset account should (all else being equal) accelerate repayment of the principal mortgage to the exact same degree as if you paid off part of the principal.

(Unless you withdraw the savings of course but.... )

InMyDreams

TighterThanTwoCoatsOfPain wrote: »

oh yeah, not sure if its a condition of mortgage, but think you my be expected to open a current account and pay your salary into it... not 100% tho as i already do.

Yes but if you haven't had one before, they'll pay you £100 into it once you transfer your salary into it. That's the current deal on the current account whether you take out a mortgage or not, and you still benefit if you do.

re zero valuation fee, I can't find any situation where they don't charge. phead, do you have that in writing?

The only 'catch' I can see is that it would be very easy to slope off making the capital repayments, or not making large enough ones. It looks like we will have to be very disciplined. But I was planning to go interest free anyway and upping what I pay into regular savers / ISAs to offset at more than 4.99%. We've managed to keep up the discipline on that for the last two years, so that bit doesn't worry me.

dweeby

Nudgemod wrote: »

How do the re payments work? do i just set up a DD with first direct or something and pay the monthly ammount, and what is the offset part about?

I've signed up for a FD mortgage, here's how they work (best of my knowledge):

1. You have to open an account with FD, but you don't have to pay your salary into it.
2. Each month, there needs to be enough in the account to cover the mortgage payment. So if you organise a direct debit from your normal account - you're sorted.
3. If you have a further balance in the account (but this is not a requirement), then this is offset against the mortgage. So whilst you don't get paid any interest on the balance, your mortgage interest payment is less because of the balance.
4. You can overpay any amount at any time with no fee.
5. Once you have over-paid, you can draw this money back at any time, without a fee.
6. As I understand it, you could pay off the mortgage 100% at any time - but to avoid the early redemption charge you have to keep everythign "open".
7. I can't find any "downside", apart from possibly the mortgage multiples and LTV rations.

Before signing up, we researched this product in some depth. Seems like a no-brainer. First Firect do not sell their mortgages thru' brokers - so they can't offer you this.