Exploring First Direct Mortgages in the UK Market

First Direct is an online-only bank and a division of HSBC UK. It offers a diverse range of mortgage products tailored to meet different financial needs and situations. Recognized for its excellent customer service and user-friendly online platform, First Direct mortgages are a top choice for many UK residents.

The article is updated on Aug 15, 2024

Introduction to First Direct Mortgages

Since its establishment in 1989, First Direct has been at the forefront of digital banking. Known for its seamless online services and award-winning customer support, First Direct provides a variety of mortgage options that cater to a wide range of borrowers, from first-time buyers to those looking to remortgageRefinancing an existing mortgage with a new mortgage..

First Direct Remortgages

Remortgaging with First Direct can help you:

• Secure a better fixed rate mortgage or offset mortgageA mortgage where the borrower's savings are offset against t...
• Switch to a capital repayment basis
• Adjust to avoid higher costs from future interest rate rises

We can assist with every stage — from checking your acceptable property valuation amount to submitting your mortgage application to the HSBC UK Mortgage Service Centre.

First-Time Buyer Mortgages

First Direct offers mortgage products for first-time buyers, often with smaller deposit requirements. Options may include:

• Gifted deposit from a family member or deposit from occupier
• Affordable Housing or Shared Equity arrangements
• Mortgages for a variety of residential property types, including mobile homes and other suitable security

Key Features and Benefits

When comparing First Direct to other lenders, the NeedingAdvice.co.uk team looks at:

• Competitive interest rates and capital repayment LTV options
• Ability to make overpayments by Direct Debit
• Acceptance of business bank statementsA record of a borrower's financial transactions often requir..., financial accounts, and business accounts for self-employed clients
• Joint mortgage options for couples or business partners
• Flexible repayment type options and acceptable repayment plans

Challenges and Considerations

Like all lenders, First Direct has criteria you’ll need to meet:

• No physical branches – all services are online or phone-based
• Strict checks by credit reference agencies and Credit Bureau
• Assessment of credit card balancesOutstanding credit card balances, which may affect a borrowe..., outstanding credit commitmentsAny existing financial commitments, such as credit card or l..., and credit and non-credit committed expenditure
• Must meet legal charge or standard security requirements
• Restrictions on some commercial property types and cases involving negative equityA situation where the value of the property is less than the...

If you’re unsure whether you qualify, our brokers can assess your case and suggest alternatives.

Frequently Asked Questions

What types of mortgages does First Direct offer?

• Fixed rate mortgageA type of mortgage with an interest rate that is fixed for a..., variable rate, tracker, offset mortgage, and remortgages.

What is the minimum deposit?

• Varies by product and may include gifted deposit or other acceptable sources.

Can I get a First Direct mortgage with bad credit?

• First Direct will review your credit report from credit reference agencies. If you’ve had issues in the past, our Bad Credit Mortgage Advice page explains your options.

How are mortgage rates determined?

• Rates depend on the Bank of England base rateThe interest rate set by the Bank of England, affects the in..., market conditions, property price, and your profile.

Can I overpay?

• Yes, and overpayments can reduce your interest costs and shorten your term.

Recent Developments and Industry Standards

First Direct keeps pace with market trends, including:

• Adoption of BLP (Build-Zone New Home Warranty) and Checkmate Castle standards for residential properties
• Consideration of affordable housing initiatives
• Digital enhancements to speed up the mortgage application process

Digital Banking Experience

With no high street branches, First Direct’s digital tools make it easy to:

• Apply for a mortgage online
• Manage your account alongside your credit card
• Track your current property value and monitor mortgage funds
• Receive updates from the HSBC UK Mortgage Service Centre

Why Speak to NeedingAdvice.co.uk?

We are whole-of-market mortgage brokers, meaning we can:

• Compare First Direct mortgages with other lenders
• Help with mortgage applications for banks mortgage lending purposes
• Advise on acceptable repayment plans, additional repayment vehicles, and charge loan considerations
• Ensure your application is structured to meet lender requirements

Meet our Mortgage Advice Team and see how we’ve helped other clients secure the right mortgage.

Contact Us

If you’re considering a First Direct mortgage, or want to compare it to other options, contact our advisers today:

• Visit our Contact Page
• Call our office for immediate help with your mortgage subject
• Arrange a callback to discuss your application process and options

Conclusion

First Direct offers a combination of competitive interest rates, a strong digital banking experience, and tailored products for a variety of borrowers — from first-time buyers to property owners remortgaging their current property.

At NeedingAdvice.co.uk, our role is to guide you through the process, making sure your application meets criteria, whether your purchase includes a bathroom refurbishment or involves unique property features.

We work for you, not the bank — ensuring the mortgage you get suits your long-term financial plans.