10yr First Direct Fixed Offset Mortgage 5.49%

glen8

Seems like a great deal to me, anyone else agree?

We are looking for a 10yr fixed but never 'paid any interest' :rotfl: in the offset products. Seems like a good idea

Has anyone just applied? was it alot of hassle moving from your existing bank to the 1st account

Thanks1

jem16

Many have already applied when the fix was 5.15% over 10 years. Read this thread.
http://forums.moneysavingexpert.com/showthread.html?t=738625

You don't have to move your exisiting bank account. You could just pay in your mortgage amount to the 1st account.

glen8

This may be a daft question, but do you need to have savings for an offset mortgage? I know it obviously won't benefit from not having any but the rate is good for a fixed.

We will have savings in a few years but probably not for a while (until we get the house sorted)

Thanks

lkalka

glen8 wrote: »

This may be a daft question, but do you need to have savings for an offset mortgage? I know it obviously won't benefit from not having any but the rate is good for a fixed.

We will have savings in a few years but probably not for a while (until we get the house sorted)

Thanks

You don't need to have savings to have the offset mortgage. As long as you have enough in the 1st account to cover the mortgage payment on the arranged date, they are happy.

Saying that obviously the more you can have in the 'linked' accounts the better.

glen8

sounds too good to be true :-)

The only issues I can see is the ERC while in the fixed period (same with any fixed mortgage deal) and having to pay £10 a month for the 1st account if you don't have £1,500 going in each month.

To do that would mean us swapping from our current bank to FD, I suppose we could do it in stages

glen8

glen8 wrote: »

sounds too good to be true :-)

Will probably save up and pay £2,000 straight into it in order to avoid the £10 a month 1st account fee and then probably round up the monthly mortgage standing order.

scomax

if yu have a mortgage with fd the 10 pound a month fee does not apply

glen8

even better :-)