First Direct Offset 5.25% 2yr fix - good deal?

xeena

2 year fixed rate offset Mortgage
5.25% for 2 years, reverting to our standard variable rate for the remaining term, currently 6.25%.
The overall cost for comparison is 6.2% APR.
(no arrangement fee / fixed offset Mortgage booking fee of £99)

This seems almost too good to be true, there's no redemption penalties beyond the 2yr fixed period, and arrangement fees are much lower than other similar mortgages (though you do have to fund the valuation and legal fees).

Does anyone have any thoughts on this? Are there any better/comparable deals out there? TBH I haven't looked that hard yet, but this one jumped out at me as very good value.

chambta

Seems very good.

fraser

just gone for this one myself, you can reserve the funds for upto 6 months too on the deal

Woodgnome_2

Yeah looks pretty good.

My current mortgage deal is up in 3 months and I will almost certainly switch to FD as they seem to have had the best offers over the last few months. I am hoping the interest rate is going to drop in either April or May so holding out for the possibility of an even better deal.

I will probably go for a 5 year deal rather than 2 this time though.

mortgagemark_2

""I am hoping the interest rate is going to drop in either April or May so holding out for the possibility of an even better deal ""

If this deal fits your requirements then go for it now - my advice is not to wait too long as I doubt they will around for long - even if the Bank of England cut the rates - Mortgage Lenders won't for new business !!