mortgages

costs

arrangement fee
There is a one-off fee of which will be payable at the time of drawdown to cover the costs of setting up your variable offset Mortgage. Arrangement fees and/or booking fees are payable for fixed rate mortgages. This will vary depending on the offer available - see our latest rates for full details.

home purchase other costs
In addition to the arrangement fee, you will also need to pay for your legal costs (which you will need to arrange separately) and valuation costs. first direct will pay for any money transmission fees.

remortgages in England and Wales
In addition to the arrangement fee, you will also need to pay for your valuation. first direct will pay any enquiry fees to your previous lender, money transmission fees and Land Registry fees.

If you are transferring your mortgage to first direct from another mortgage provider, they may charge an early repayment charge if you are moving during a fixed rate or "tied-in" period.

remortgages in Scotland and Northern Ireland
In addition to the arrangement fee you will need to pay for a valuation for an offset Mortgage. You will also need to cover your own legal costs, including Land Registry and other directly related completion fees. However, first direct will contribute up to £400 towards these costs (we will refund this to you upon receipt of a copy of your solicitor’s invoice following drawdown of your offset Mortgage) and we will pay for any enquiry fees to your previous lender and money transmission fees.

valuation fee
This will vary on property value and the type of valuation you have carried out.

closure administration fee
£149 payable on closure of the mortgage account. This fee is waived if you are transferring to another first direct mortgage product.

banking charges
All other standard first direct 1st Account charges will apply. See full terms and conditions for details.

early repayment charges

If you choose a fixed rate mortgage and close that mortgage during the fixed rate period, you will have to pay an early repayment charge. This charge is calculated at 3% of the original mortgage amount during the first year of the fixed rate period and 2% of the original mortgage amount if the mortgage is closed in any subsequent year during the fixed rate period. If you close the mortgage after the fixed rate period has ended, no repayment charge will apply.

The amount of any early repayment charge will be displayed on both your Key Facts Illustration and Mortgage Offer, which you will receive should you decide to progress with a mortgage application.

statements

You will receive individual account information for each of your accounts - monthly/quarterly statements for first direct 1st Account or savings accounts, and 6 monthly statements for the offset Mortgage itself. A detailed annual statement is also provided.

insurance

As a condition of an offset Mortgage, you must ensure that your building is insured to the full rebuild value until the loan is repaid.

offset Mortgage terms and conditions