Head of Content
Mortgage Advisor & Director
First Direct
About First Direct
First Direct is a phone and internet-based retail bank and a division of high street banking giant HSBC. They offer a range of products and services, including mortgages.
This lender’s deals are not available through mortgage brokers, but we recommend comparing the rest of the market before restricting yourself to First Direct.
You can browse the mortgage rates available from 90+ UK lenders and compare them with what First Direct are offering below:
Compare Mortgage Rates Online in Seconds
We work with 90+ mortgage lenders from across the market. We can help you compare mortgage rates from different lenders and find the best deal for you.
Use our free comparison tool to compare mortgage rates from 90+ lenders in seconds. We'll show you the latest deals so you can make an informed decision about which option is right for you.
To get started, fill in our quick online form or call 01484 242424 to speak to our expert mortgage advisers today!
What mortgages are available from First Direct?
First Direct offer residential mortgages only. Their range is divided into two product types:
Repayment mortgages
There are 2, 3, and 5-year fixed-rate mortgages available, with a 10-year option reserved for existing customers. Lifetime tracker mortgages are on offer to new and existing borrowers.
Interest-only offset mortgages
These products, which allow borrowers to link a current or savings account to their mortgage to reduce the interest charges, are available to existing First Direct offset mortgage holders.
It comes in 2-year fixed and tracker variations, with the LTV starting at 75%.
Eligibility criteria
The criteria for a First Direct mortgage is as follows:
- Deposit requirements: Start at 5% of the property’s value (95% LTV) in its repayment mortgage range. Offset mortgages require at least 25% deposit.
- Credit history: First Direct recommends that customers obtain their credit files from the credit reference agencies before applying for a mortgage. They will make a lending decision on borrowers with bad credit on a case-by-case basis.
- Term lengths: Terms of between two and 40 years are available.
- Proof of income: Self-employed applicants with less than two years’ trading history can get approved with one year’s accounts, dated within the last 18 months, and their last three months’ business bank statements.
- Age limits: Applicants must be aged 69 or less at the time of application.
- Interest-only offset: Must be an existing customer to qualify for this mortgage type.
- Property type: Must be of standard construction with a working kitchen and bathroom. First Direct has LTV caps on certain property types, like new builds (85%) and flats (90%).
What mortgage rates are available from First Direct?
Examples of First Direct’s latest mortgage rates at the time of writing (October 2024) include:
- Two and three-year fixed rates: 4.54% for new customers and 4.49% for switchers with at least a 15% deposit
- Five-year fixed mortgage: 3.99%
- Ten-year fixed mortgage: 3.99%
You can review how these rates compare with what’s available from 90+ other UK lenders by using our free comparison service - get started here.
How much will they let you borrow?
First Direct will cap your maximum borrowing at between 4.5 and 4.75 times annual salary. You can get a rough idea of what this will equate to and compare it to some of the higher income multiples used by others lenders by entering your income into our calculator below:
Are First Direct a good mortgage lender?
First Direct currently holds an average rating of 4.3/5 on consumer review service Trustpilot. This indicates ‘excellent’ reviews, but they are for all of its products, not just mortgages.
In a survey of UK mortgage lenders, consumer ground Which rated First Direct at 67%, placing them in 11th place out of 22 lenders surveyed.
Pros and cons
The table below offers a snapshot of the advantages and disadvantages of First Direct as a mortgage lender to help you decide whether they are the right option for you:
|
Advantages |
Disadvantages |
|
Positive reviews from existing customers |
Limited product choice |
|
Rates are generally competitive |
Freezing out mortgage brokers means it’s more difficult to compare their products to the rest of the market |
|
One of few lenders offering offset interest-only mortgages |
Uses lower income multiples than some lenders to calculate affordability |
|
Flexible with self-employed applicants |
Stringent criteria for non-standard construction properties |
How to apply for a mortgage with First Direct
As their name suggests, the only way to apply for a mortgage from them is to go direct. They do not offer deals through brokers, but that doesn’t mean you shouldn’t speak to one before you press ahead with a mortgage application with First Direct.
It’s always a good idea to compare what is available elsewhere before limiting yourself to one lender’s product range. Even if you think First Direct are the perfect mortgage provider for you, it will give you peace of mind knowing you have researched every other option.
We recommend reviewing the rates deals on First Direct’s website and comparing them with what you find on our free comparison service, to ensure they are the best you qualify for.
You can browse what’s available from their competitors across the market, choose the one you want in real time, and turn to a broker for advice at any point.
How Teito Works
You have two options when you get started with Teito: you can select the option to speak with an advisor straight away or source a mortgage yourself. If you want to choose your own mortgage deal, follow the steps below:
Click ‘Get Started’
Hit the button below and enter a few quick details. It takes less than 60 seconds to begin the mortgage process with us
Compare Quotes Online
Next you can view rates and deals from across the entire market online and choose the one you want in real time
Apply Online
We’ll take it from here and have an expert mortgage broker on hand to ensure you have chosen the best deal for you
FAQs
No. Buy-to-let mortgages aren’t currently available from First Direct, but parent company HSBC does offer them. You can read more about buy-to-let mortgages, including which other lenders are available for them, in our standalone guide through the link.