First Direct company is a part of HSBC Bank.
The company was founded in 1989 by Midland Bank, and in 1992 was acquired by HSBC Bank.
The peculiarity of First Direct is that the company does not have branches, and it is possible to contact its team only by phone or on the official website, using the appropriate bank service to manage existing services or applying for a new one.
The call centers are based in England and Scotland.
Company offers mortgage loans for the first byers, new customers, existing customers, as well as remortgaging and moving home services.
Clients are offered two types of mortgage – offset and repayment.
In addition, you can choose between fixed rate repayment and First Direct tracker mortgage.
First Direct reviews state that the company is the first to date, which was able to achieve the maximum reduction of rates and offers the most favorable conditions for the mortgage from First Direct.
So, they offer the customers a flat rate of 2.28% for a period of 5 years, or 2.89% for 10 years.
Of course, such conditions look very tempting, but it should be noted that a deposit of 40% is required to receive such a mortgage.
Thus, we can assume that such rather low rates are compensated by a large amount of the deposit, which is not owned by everyone who wish to buy a home.
Let’s consider mortgage rates in comparison with other companies.
Rates & Fees
Firts Direct mortgage offers customers a flat rate of 2.28% for five years with a commission of 1,450 pounds sterling.
If the term of your loan is 2.89% for 10 years, then the commission will be 950 pounds.
Thus, a mortgage loan of 150,000 for 25 years with a fixed rate will cost you £ 656 per month and £ 40,835 for 5 years.
However, if you carefully study all the lending proposals, you can see that there is an opportunity to save even paying a higher loan rate, but a lower fee.
For example, there are companies that offer a higher fixed rate of 2.34% for 5 years and 975 pounds’ fee.
Thus, the cost of a mortgage for 25 years at a rate of 150,000 will be 660 pounds a month and 40,629 pounds for 5 years.
That is, the savings will be 200 pounds.
After making some calculations and comparing rates with companies that offer 2.84% per month and 999 pounds fee, we found that such a thing will cost you 311 pounds less.
Given all the above calculations, you need to very carefully approach the choice of a company to obtain a mortgage.
However, it is worth considering that as a part of the bank with many years of history, First Direct is a company that is trustworthy.
All payments to the company are under the supervision of HSBC Bank.