Reply to: Offset Mortgage - First Direct

[MortgageTips]

Accord/Yorkshire Building Society also offer Offset options, u can use the facility to either reduce the Term, reduce your current monthly payments or reduce your payments each annual anniversary.
Rates from 1.64% on a 2 year fixed rate.

[SteelyDan]

Seems like you've got it sorted, but just to mention, we had an offset mortgage with FD, back in the day [WWHAM]. I was an existing customer when I was a perm, but I then switched to contracting later & kept the offset mortgage - no hassle. The FD offset provided a great deal of flexibility; I could draw down money if/when ever needed, plus I could keep paying off lump sums as and when I felt able. Also found out I could have taken mortgage payment holidays too. All academic now as you've solved your problem.

[eek]

I am looking to remortgage as well and the best deal I can find is Santander 5yr fixed at 1.79% with no arrangement fee.
If you have a big mortgage there are better deals with arrangement fees, but mine is c. £50k so arrangement fees really hurt.

IMO Offsets are terrible deals as you cannot get a decent interest rate. Flexible mortgages that allow overpayments offer the advantages of offsets but with better rates. For what it's worth.

Offsets allow you to not pay the money down immediately so give you flexibility which you may not otherwise have...

[Lance]

I am looking to remortgage as well and the best deal I can find is Santander 5yr fixed at 1.79% with no arrangement fee.
If you have a big mortgage there are better deals with arrangement fees, but mine is c. £50k so arrangement fees really hurt.

IMO Offsets are terrible deals as you cannot get a decent interest rate. Flexible mortgages that allow overpayments offer the advantages of offsets but with better rates. For what it's worth.

[doconline]

Thanks all. Were just coming to the end of our deal with nationwide and I had a look at different offsets and First Direct seemed to have the best rates for offsets. I've moved onto a tracker for the time being as it doesn't have any redemption penalties. Will speak to one of the brokers mentioned in the new year.

Cheers all for your input.

[WTFH]

Offset Mortgage - First Direct

Weird FD were happy to give me an agreement in principal but maybe because I'm an exsisting customer. From memory they calculated it from my profit plus the wife's income by their multiplier.

The banks have a long list of criteria that they apply before making any decision on a mortgage. At this stage all we know from the OP is that they told him they wouldn’t accept dividends as income.

... was told they wouldn't accept dividends as income...

Things like the size of the deposit and LTV, along with whether it is one person’s income or two, the credit history, etc. If you’ve history with a bank that can be a big help too (as long as it’s good history!) These all affect a bank’s decision.

[poorautojobber]

Weird FD were happy to give me an agreement in principal but maybe because I'm an exsisting customer. From memory they calculated it from my profit plus the wife's income by their multiplier.
i actually decided to go replayment for various reasons via Stuart @CMME 1.69% fixed for 5 their fee was a little high but the paper work I did with them took weeks to sort out because of a BTL and a couple of other financial bits.
We've been on a FD offset for 9 years and it worked really well for us but you need financially to plan which the government doesn't think we are all capable of anymore. We would have paid it all of next year if we hadn't jumped back in.
Banks have really tightened up the paperwork required was crazy and the stress testing wS interesting but I think it's actually a good thing. last year I probably could have borrowed another £100k+

[ChimpMaster]

Hi all,

I just wondered if anyone had an offset mortgage with First Direct? I called them but didn't get through to the mortgage department, but was told they wouldn't accept dividends as income, so I would not be eligible for one. Anyone else managed to get one with them? IF not, but you have one with a different provider, who did you get one through?

Thanks in advance.

Doc

Speak to Freelancer Financials

Ask them to look at Coventry Building Society for you

Depending on your circumstances, aim for something like an OFFSET 5-year fix. Coventry's rates are competitive : 2.19% for 5 year offset fixed up to 75% LTV.

If you can do 50% LTV then it's 1.99% for the same loan conditions.

[ShandyDrinker]

I use Freelancer Financials and I am almost sure they set me up with a offset product through RBS. It was 4% rate so you'll have to work the numbers to see if it's more beneficial for you or not.

Although they are a specialist contractor setup they do have access and can help with non contractor offerings if you fit the criteria.

+1 for Freelancer Financials. I got a 5 year offset with Scottish Widows through them at a very competitive rate back in July. Very good service. The only supporting evidence they needed was my latest contract (which I'd just renewed) and a completed questionnaire.

[kaiser78]

Barclays who also accepted dividends as poi. At the time anyhow.

[SueEllen]

I just got an offer in principle from Nationwide, they do take into account dividends they asked for the total amount of income dividends, salary and other income that was on my (and my wife's) tax returns for the past two years and based the mortgage offer on that.
Have to say it was much lower then the one I got from one of the contractor brokers, but that was irresponsibly high

You don't have to accept the full amount offered.

[Eirikur]

I just got an offer in principle from Nationwide, they do take into account dividends they asked for the total amount of income dividends, salary and other income that was on my (and my wife's) tax returns for the past two years and based the mortgage offer on that.
Have to say it was much lower then the one I got from one of the contractor brokers, but that was irresponsibly high

[CoolCat]

Give London and Country broker a ring

[northernladuk]

I use Freelancer Financials and I am almost sure they set me up with a offset product through RBS. It was 4% rate so you'll have to work the numbers to see if it's more beneficial for you or not.

Although they are a specialist contractor setup they do have access and can help with non contractor offerings if you fit the criteria.

[doconline]

Thanks for all the replies everyone.