First Direct Fixed 5.25 fixed offset

silvercar

browniej wrote: »

I'm pretty close to the 80% LTV on this and only if FD value the house at the price I pay for it.

If they agree in principle but then value it at less will the offer change? At what point would they tell me this as I would need to find a mortgage elsewhere?

After you've paid the first 299 booking fee and 100 valuation fee but before you've paid the second 299 arrangement fee, I would guess. I imagine they would offer you 80% of LTV, so you could decide to borrow the difference elsewhere if it were small. (I'm assuming the fee structure is the same as the 4.99% 5 yr fix I was looking at, it may not be.)

jedimonkey

Ive just spoken to FD - Im at approx 86% LTV, and so normally wouldnt qualify - they said the take each case on an individual basis of affordability etc. They are very busy and will call me back to discuss further - but it could be upto a couple of days...

LostSocks

I've been trying to get them to phone me since last Wednesday. I finally got a call back today and I was out!! So annoying. I need to get it moving as we are in talks to exchange contracts this week but will not be completing till April as it's a new build at the top of the chain. I want to swap to this mortgage instead of the one we currently have offered as it's a much better rate on the 10 year fixed rate and could save us £30 a month or save 3 years on the term if we overpaid.

roberts_driskell

Does anyone know if the mortgage is portable? If it isn't what options are there for moving house within the 5 years, can it be kept 'open' as discussed in earlier posts or do you have to stump up the fee?
Rang them yesturday so am just waiting for the return call.

yus786

Would you say this is similar to the 'One Account'?

I'm with the One Account and am currently on 6.6% (will be 6.35% from tomorrow) and have about 80% off-setted.

I only have about 6 years left - so this 4.99% for 5 years would suit me great.

Ta

silvercar

If you have most of it offsetted (is that a verb?), the payback to recoup your costs will be longer.

The 4.99% fix has 299 arrangement, 299 booking and 100 valuation, add that to the redemption fees on your current mortgage and work out how many months of savings it will be before you break even. (I realise you will have to make some assumptions on interest rates).

I was going to go for it until I did the calculation. I wouldn't be in credit for at least 10 months and apart from the dinner party kudos of "I've fixed at 4.99!", now that we can't talk about house prices anymore:rolleyes: it really wasn't worth the hassle of moving mortgage and current accounts.

going2die_rich

Why are you going for fixed rates when interest rates are going down and are likely to be followed by further cuts this year alone?

You are meant to fix your rates when they on their way up, not down!

hangover

roberts_driskell wrote: »

Does anyone know if the mortgage is portable? If it isn't what options are there for moving house within the 5 years, can it be kept 'open' as discussed in earlier posts or do you have to stump up the fee?
Rang them yesturday so am just waiting for the return call.

It is portable, but it is at First Direct's discretion. I received my mortgage offer from them a couple of days ago and this is what it says:

What happens if you move house?
Early repayment charges payable during the fixed rate period will still be applicable.
If you move, you will have to repay your mortgage. We will of course be happy to discuss the finance for your new house.
If you want to transfer this mortgage to another property you should contact us to talk about it. We will consider your request subject to:
* any replacement mortgage being taken up simultaneously with the repayment of your existing mortgage and;
* our satisfaction as to your financial status at the relevant time and;
* our normal assessment criteria.
We will transfer your mortgage from one property to another without applying the Closure Administration Fee or any Early Repayment Charges if the above criteria are met.
If you wish to increase your borrowing when you move home, any additional funds may not be at the same rate as this mortgage.

gil13

the interest rate is attractive compared to other fixes over similar periods, but as you say interest rates are coming down and as they do the FD deal will look less attractive. will be interesting to see what happens with these types of deals over the course of the next few months, i think offset fixes may well become more popular in the future. personally just keeping a watching brief at the moment.

ixwood

Interest rates are coming down, but are mortage rates? Aren't banks running out of money?

Plus, the FD fixed deals are still lower than the base rate anyway. And much lower than the rest of the market.

Looks like a great 10 year deal to me. But I do think we're in for a bumpy few years with rates dipping, then heading up.