First Direct Fixed 5.25 fixed offset

jem16

dweeby wrote: »

All you want to know is here, check out the thread.

I noticed that thread after I posted here. I have now read everything. It seems to be taking longer to get the pack out now - my son applied on Sunday so hopefully sent yesterday.

JIMBOBC

I had a quick call with first direct and they seemed great said would phone back within 7 days. Do you have to pay for the offset fee at £299 or can you just do a repayment mortgage? I am in a difficult situatuion I have £65k to remortgage but not until the end of May. I can't decide whether to take the excellent 5 year fix at 4.99% or wait as there could be potentially two rate drops before then. Given the fact that it is so much better than the rest of the market it seems to good to be true. Anyone got any thoughts?

Cheers,

jem16

jem16 wrote: »

I noticed that thread after I posted here. I have now read everything. It seems to be taking longer to get the pack out now - my son applied on Sunday so hopefully sent yesterday.

Pack arrived today. He has already had a valuation survey done through his solicitors. FD said to include a copy of that.

We'll get everything gathered up and sent off.

jem16

JIMBOBC wrote: »

I had a quick call with first direct and they seemed great said would phone back within 7 days. Do you have to pay for the offset fee at £299 or can you just do a repayment mortgage?

The fee is set whether you plan to offset or not.

I am in a difficult situatuion I have £65k to remortgage but not until the end of May. I can't decide whether to take the excellent 5 year fix at 4.99% or wait as there could be potentially two rate drops before then. Given the fact that it is so much better than the rest of the market it seems to good to be true. Anyone got any thoughts?

Cheers,

Can't see it dropping below 4.99% anyway. FD only have a pot of money to use on these deals. It's on a first come first served basis apparently.

Gambler

Just got the "we'll call you back in 7 days".

I can see this being a struggle as when the lady asked me for the property details I had to reply "which one?".

Just at the start of the process of moving house so I'm hoping when they call back they can give me some good advice!

dweeby

Gambler wrote: »

Just at the start of the process of moving house so I'm hoping when they call back they can give me some good advice!

They won't give you any advice, they don't do "advice". You need to decide for yourself what kind of mortgage you need (fixed, variable, tracker, etc).

But once you've decided (and you could ask a broker), provided you meet their requirements, they will give you the cheapest mortgage out there - in my experience...

My advice would be to get approvals (without paying any fee) early in the process, my application is taking longer than I would have liked.

OFFSETKIDDO

If anyone is disciplined enough to do it, then this mortgage is perfect for stoozing. I'm on a 10 year (fixed rate of 5.19% 8 years left deal). I regularly get money from credit cards on 0% bal transfer deals and use it to offset the interest charge.

It's an efficient way to get a better interest rate:

So, instead of earning, say 6% - gross (which, after tax for a basic rate taxpayer is really 4.8% - net) interest on a saving of, say £10,000, which would be £480 per year, I'm receiving an effective rate of the mortgage interest by a rate of 5.19% - net, so for a basic rate taxpayer that's a rate of 6.4875 gross, or a higher rate taxpayer gets 8.65% - all on money that I'm getting on 0% deals. So far, on a mortgage that started at £70k back in 2003, I've managed to reduce the interest charges by nearly £7k (get in!).

Combine this with being able to overpay, it gives you the chance to pay your mortgage off early - as other peole have mentioned, to avoid the penalty charge for early closure, you just keep the account open until the fixed rate period ends.

Gambler

dweeby wrote: »

They won't give you any advice, they don't do "advice". You need to decide for yourself what kind of mortgage you need (fixed, variable, tracker, etc).

Sorry I meant advice as in do I have to remortgage now or can I wait till I buy the new house etc.

I know which deal I want it's just how best to facilitate it.

poorjim

So with the FD Offset. If my salary gets paid into the current account this is offset against the daily interest. Does this then mean that I pay say £2000 less interest at the start of the month? Do the monthly payments remain the same and the extra get taken off the loan amount?

rooo

Just heard that FD are pulling the 4.99% rate tonight, so get in very quick if you want this. They may of course be putting something better in its place, but I personally doubt it.