Alliance & Leicester mortgage rate cuts
Published: 8 January 2009 By MoneyhighStreet Staff 3 Comments
Alliance & Leicester, part of the Santander Group, is offering two-year fixed rate mortgages at 3.49% for loans of up to 60% of the property value.
This follows last month’s 1% cut in the base rate by the Bank of England.
However, it only reduces the best two-year fixed interest rate by 0.5% from their previous rate cut on this product in December 2008.
For this new interest rate the arrangement fee has increased to 2%.
For two-year fixed rate mortgages with 75% loan to value (LTV) of the property, the best rate is now 3.99%, again with a 2% arrangement fee.
Alliance & Leicester are offering three-year fixed rate mortgages:
- 4.49 % for 75% LTV
- 5.44% for 85% LTV
Both have a 2% arrangement fee.
Across the mortgage market there are far fewer tracker mortgages now compared with 2008. Alliance & Leicester are offering a two-year base rate tracker mortgage. The rates are
- 3.49% for 60% LTV with a 2% fee or 3.99% with 1% fee
- 3.99% for 75% LTV with 2% fee or 4.49% with 1% fee
The best rate for the 60% LTV mortgage product is based on the Bank of England Base Rate +1.49%.
The improved mortgage rates from Alliance & Leicester of course come as the Bank of England has today further cut the base rate to a historic low, from 2% to 1.5%. This is the lowest rate it has been since the Bank of England was established over 300 years ago in 1694.
the banks annoy me, they make the screw ups and the tax payer bails them out, yet they so quickly reduce interest rates for savers but do not do so for customers with mortgages, its time people in this country got real and stopped taking rubbish from the government and fat cats, as it is we are still paying too much for fuel, the price of the barrel has more than halfed yet are we seeing the benefits?…no…why cos our government doesn’t want to scare all the fat cats and face the risk of them relocating abroad
If the whole country declares themselves bankrupt then the banks will start to re think, they dont want to be stuck with property they overvalued in the first place that is in negative equity
and im sure if the interest rates when up, savers wouldn’t see it straight away, but people with mortgages sure would, banking needs to be better regulated, all these city boys don’t give a hoot, all they care about is funding lavish livestyles for their useless girlfriends whose jobs are shopping and getting their annual bonus’
We took a mortgage with A&L recently and they had such a long backlogs of paperworks and almost make us lost our house and thousand of pounds as they were slow to process the paperworks and arrange for a valuation. They also have extremely poor customer service. I would recommend not to get A&L if you want a quick sell.