Seems I’ve come across another quirk of FD. My mortgage application has been accepted and it seems they don’t use direct debit, but instead request the monthly payments are made by Standing Order! Not really an issue, but thought it was a bit strange!
Same with their loans. I borrowed £2,000 and had to set up a standing order for it. This was only two years ago.
When the loan ended I accidentally forgot about the standing order and overpaid by one month. It bounced back within 24 hours.
So it’s foolproof but bizarre. I kind of like it. It gives you a sense of control over it that your administering your own borrowing self serve.
This is the same with their savers.
Their back end must be so antique to have to work in this way.
I can confirm this is the case.
The joy of it being you can overpay from any account you like via FP.
I had a largish loan from first direct 5 years ago and fd used Direct Debit to repay it.
I wonder why mine wasn’t DD
Size of balance? Mine was >£7,500.
Mine was £2k over 12 months
Edit: It was settled in 6
It sounds a bit like their regular saver, which is also a custom non-editable standard order and also requires payments in to come from your First Direct current account (which I think their mortgage does).
I suppose a standing order to one of their accounts is treated as an internal transfer by them, so doesn’t cost them anything in terms of payment scheme fees - whereas Faster Payments or Direct Debits would cost them a small amount and extra processing.
But in this case - you can transfer whatever, whenever you like (the mortgage literally operates like a current account) - from any other current account. So it’s very flexible - where in other areas they appear rigid?
Interesting - yes, they are very rigid for the regular saver for some reason. You are allowed to change how much you pay in from month to month, but can only do so by manually requesting that they edit the standing order for you (it’s impossible to do it yourself)!
I’m not sure what I was surprised about more, that fDesign was still going or that for a bank that seems to struggle to do things like transaction notifications it’s asking about microchip implants
Can you choose where you have it?
You can amend standing order values via the FD app.
It is a strange setup on their part and I hope they improve these silly bits.
Someone at First Direct must have read to suggest the possibility of microchip implants.
I just found out I got £2.80 in cashback on my gold credit card for foreign currency purchases in August from a promotion I had no idea was in effect
Weirdly FD will allow the mortgage to be paid by Standing Order from a non-FD current account. They asked where I would be making the payments from and I said my main Lloyds account. When the advisor was reading one of their scripts, they said something along the lines of “as you’ll be using an account with another bank you will be responsible for setting up the standing order and adjusting it if the payments changed” etc.
So I said that in that case I’ll just have the mortgage come out of my FD account if it means it’ll be simpler and by Direct Debit. That’s when they said it would still be by Standing Order with a FD account, but they would set it up and would adjust it themselves.
I had a Personal Loan with them about 8 years ago, but can’t remember if that was SO or DD for me.