Alliance and Leicester have slightly lowered rates and product fess

living_legend

I'm with Alliance and Leicester and im due to re mortgage next month and i've been holding off hoping they would reduce their product fees as most were 2% and also hoping they would reduce their interest rates.

Just been on their website and it looks like most of them have went down about 0.25% and most options gaive you the option of 1% product fee or you can have a slightly higher interest rate 0.20% higher but just pay £599 product fee.

I think what they have done is put a early repayment charge on nearly all of them to compensate.

Last month i nearly went for fixed for 2 years at 6.7% with 2% product fee which would have been £2000 , now they are offering 2 year fixed at 6.69% with £599 product fee or i could take 6.49% 2 years fixed with 1% product fee which would be £1000, dont think there is much difference over the 2 years unless anyone think one of the 2 would be better?

I need to stay with A+L because im not working full time so i understand the rates arent that great compared to some deals but at least the rates have come down a bit as have the product fees.

Thought i'd post this incase anyone was due to renew but was also put off with the 2% product fees.

living_legend

Just phoned Alliance and Leicester there, last month i was offered 6.74% with 2% product fee and paying £675 per month.

With the new rate 6.49% with 1% product fee it works out at £610 per month so £65 less than last month.

Works out £125 more than i was paying over the last 2 years but i'm fairly happy with that, at least i never took the deal last month or i'd be kicking myself.

will-in-estoril

My 3 and a bit year fixed rate of 4.24% ends on 31 December. When I checked the mortgage deed I noticed that I will automatically move onto a base rate tracker of BOE base rate + 0.75% for the life of the mortgage.

Whilst not as good as deals a few years ago it gives me a degree of breathing space.

If you are in a similar position, and assume you will go onto the SVR check your documents first. It could save you time and money!

living_legend

Thanks for that, checked what the Standard Variable Rate would be and its about 7% so dont think i'm eligable for that ive had my mortage for coming up to 2 years so maybe that was something they had a few years ago, thanks again though