First Direct cuts mortgage rates

gt94sss2

First Direct has announced it is to cut interest rates on two mortgage products by up to 0.20 per cent.

With effect from tomorrow First Direct will cut the cost of its two-year fixed-rate deal to 5.59 per cent (6.3 per cent APR). The offer comes with a £499 booking fee and £999 arrangement fee.

The previous pricing of the deal was 5.76 per cent, with a £499 booking fee and £1,499 arrangement fee.

There is also a low fee version on offer from the lender – which is part of the HSBC group.

First Direct is now offering a two-year fixed-rate mortgage at 5.89 per cent (6.2 per cent APR); along with a £99 booking fee and £399 arrangement fee.

Again this has previously been priced at 5.99 per cent, with a £99 booking fee and £399 arrangement fee.

The pricing of the bank's five and ten year fixed rate mortgages is unchanged. The new deals will be on offer from Friday 30th May.

Chris Pilling, First Direct's chief executive, said: "We regularly review our fixed-rate mortgage offers to make sure they're competitive.

"Today, we're reducing the cost of our popular two year fixed rates, which is likely to give them a prominent place in the best buy tables."

First Direct returned to mortgage lending to new customers on May 19th after a seven week hiatus.

from here and here

Regards
Sunil

mpsavuk

Shame about the 80% LTV!

And the maximum loan size is £400,000.

Turtle

Well, you can't have everything.

ixwood

Who would want more than 400k on a mortgage? That's just crazy.

Even if you could afford it, why would you want to? 24k interest a year at 6%. Gulp.

farhad1965

ixwood wrote: »

Who would want more than 400k on a mortgage? That's just crazy.

Even if you could afford it, why would you want to? 24k interest a year at 6%. Gulp.

Call me crazy! My mortgage was £467k to start with and after nearly 2 years it is down to nearly £430k. I am planning to get it down to £400k by August when my 2 year deal is up and I am looking at the First Direct product as a possibility.

judi24

These fixed rates are on an offset mortgage is that correct?
It says that these mortgages are interst only - so I would have to make extra payments to pay off capital? How do I know how much extra I need to pay off the capital over the term? Is it as simple as dividing the capital by number of months of the term or am I being dim?

JonnyBravo

judi24 wrote: »

These fixed rates are on an offset mortgage is that correct?
It says that these mortgages are interst only - so I would have to make extra payments to pay off capital?

Yes

judi24 wrote: »

How do I know how much extra I need to pay off the capital over the term?

They tell you how much you'd need to pay to make it a repayment mortgage for the term you specify.

judi24 wrote: »

Is it as simple as dividing the capital by number of months of the term or am I being dim?

It is an option but usually not done that way. That would make yours an ever decreasing payment as the interest declined but your capital payment remained the same. Usually a mortgage is arranged to be a flat payment worked out so that as your interest declines an equally increasing slice goes on the capital.

ixwood

farhad1965 wrote: »

Call me crazy! My mortgage was £467k to start with and after nearly 2 years it is down to nearly £430k. I am planning to get it down to £400k by August when my 2 year deal is up and I am looking at the First Direct product as a possibility.

Crazy.

Why on earth did you borrow that much? How much are you going to have paid in interest by the time you've paid it off?

farhad1965

ixwood wrote: »

Crazy.

Why on earth did you borrow that much? How much are you going to have paid in interest by the time you've paid it off?

I know but the house we wanted was £200k more than what we initially had thought about spending. It is not that bad as our equity is 45% at the moment and I plan to pay off the lot in just under 12 years. I am paying £1,800 interest per month at the moment. In terms of location, this is a very good location with houses round us being all detached and £800k to several million in value.

allan673

i remortgaged with first direct in february, i got the 5.15% 10 year fixed rate offset mortgage.
ive opted for standard repayment style to repay the capital, interest started off at £245 per month, and the capital part is £210.
ive got a monthly standing order set up for £460 to pay both capital and interest, the interest part will go down each month but there will still be £460 going into the mortgage each month.
im also making regular overpayments online which is a good facility.
ive got 15 years remaining but hope to pay it off in 10 years when the fixed rate ends.

allan673

FARHAD 1965 - what do you do for a living?

not being nosey lol, it just amazes me what people do for a living and what they earn.
im wellish educated, electrician and work my but off all year for 30k.

the other day i was working at a garage showroom fixing the air con and a guy pulled up in a brand new lamborghini, i was dying to ask him what he did for a living (and if he had any jobs going lol).
a kid who i went to school with is now a stockbroker in london, he is absolutely loaded, i take my hat off to people like him - well done.
if only it were me lol.