The big things matter. The biggest money thing is your mortgage, so why not pay less and pay it off early?
smartmortgage is the ultimate flexible mortgage - you decide when and how to repay.smartmortgage brings all your money together to give you the full benefit of what you’re worth. If your money is presently split up into different saving, mortgage and borrowing accounts you pay more interest. With smartmortgage, your income and savings automatically reduce the amount of your borrowing. So you pay less interest, and could pay everything back quicker, leaving you better off.
The Firstdirect.com flexible mortgage links savings account and current account balances to the mortgage, which can reduce the amount of interest paid and repay the mortgage early.
The smartmortgage APR is one of the most competitive rates on the market at no more than 1% above base rate.
- customers can take a break from repaying their capital at any time and borrow back the capital they have previously paid
- additional borrowing at smartmortgage rate, can be agreed
- there are no arrangement or renewal overdraft fees on products that are linked to smartmortgage
- no tax to pay on savings
- the sooner you move - the better off you'll be
Moving mortgages is not as difficult as you may think. Once you've sent in an application form Direct Direct will do all the work for you and their dedicated team will be on-hand to anstheyr queries and ensure a smooth transition.
To apply for a smartmortgage you'll need to be a Firstdirect.com customer.With a clear, competitive single interest rate for all your borrowing and savings, you can hold savings, current and borrowing accounts in separate ‘pots’ but optimise your interest across them all by off-setting your savings against your borrowing.
Your savings and any money paid into your current account will reduce the borrowing and mortgage interest. You’ll keep more of your money, reducing the interest you pay and tax on your savings.
You’ll know exactly what you’ll get and where you are. you’ll also know that you can borrow at a low rate, using the equity in your home at any time. you’ll be putting your hard earned money to maximum effect at all times. Yet you’ll achieve greater control and flexibility over your finances
smartmortgage removes the confusion of having your money spread across several pots all with different rates, conditions, terms and access levels.
With smartmortgage, all your money will be earning its keep, working off your mortgage interest. and any borrowing will be at the low smartmortgage interest rate. there is gain without pain, and there’s life beyond mortgages. why not get there sooner?
If you are not yet a Firstdirect.com customer and you are interested in our new smartmortgage, you can request a smartmortgage and bank account application form.
smartmortgage is best for people who:
- have a bigger mortgage than their savings
- have regular incomings (salary etc.) greater than outgoings
- have good levels of savings
- are tax payers
- want to take control of their mortgage
- want to pay less on their mortgage
- want to pay off their mortgage early
- want to have flexibility over their mortgage payments.
Normally loans up to 80% of the value of your home are considered. Hotheyver, loans in excess of this considered, depending on your personal circumstances.
Firstdirect.com don't want to encourage you to borrow more than you need or can afford, so they'll work out a borrowing facility that suits you both. As a guide, they'll normally consider lending up to:
- sole application - 3.5 times your gross salary
- joint application - 3.5 times the higher salary plus 1.5 times the lotheyr salary or 2.75 times combined gross annual salary. Use the calculator to work this out.
To open a smartmortgage, you'll need to:
- agree a mortgage of at least £40,000
- agree a target repayment date - on or before your 65th birthday
- be aged 18 or over
- open a current account, if you don't already have one
- be happy to use your property as security for the account
- own or be about to buy a property in England, Scotland, Wales or Northern Ireland.
It's also important that you're aware of the following points:
- Firstdirect.com cannot lend against a 'right to buy' or 'buy to let' property
- they need to hold the first legal charge over your home (just like any other mortgage)
- they do not allow a second Legal Charge to be registered on your property
- you may need to pay valuation and legal fees
- they strongly recommend that you arrange life assurance so that your mortgage can be paid off in the event of your death during the mortgage term.
- they can arrange independent financial advice through Firstdirect.com Investments (UK) Limited.
Additional information can be found on the Firstdirect.com Mortgages website.
(See the links above)
First Direct Mortgages
