First Direct has mortgages for first time buyers, new customers re-mortgaging or moving home, and existing customers looking for a better deal or trying to pay for home improvements.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
First Direct is a division of HSBC. It was formed in 1989 by Midland Bank, but became part of HSBC when HSBC acquired Midland Bank in 1992. The bank’s biggest selling point in the early days was their non-traditional approach and within two years they had more than a quarter of a million customers on their books.
Unlike HSBC, First Direct doesn’t have any branches, so customers have to use the internet or the bank’s telephone banking service to administer existing products or apply for new ones. The bank has two call centres: one in England and one in Scotland.
There are First Direct mortgages for first time buyers, new customers re-mortgaging or moving home, and existing customers looking for a better deal or wishing to borrow extra funds to pay for home improvements or maintenance.
First Direct offers two types of mortgage: offset and repayment. Repayment monthly payments cover the interest and capital, so the mortgage is repaid in full at the end of the term. An offset mortgage is an interest only vehicle linked to a savings or current account. Monthly repayments cover the interest on the difference between the two. This type of First Direct mortgage is suitable for customers with savings to offset the interest payable on their mortgage.
There are two ways to apply for a First Direct mortgage. The first is to call the First Direct call centre and the second is to make an online application. Customers speaking to a mortgage advisor will receive extra advice on their mortgage, whereas online applicants will not.
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