Alliance and Leicester Rip OFF

jaigo76

Correction... at first glance it looked as though they had gone up, but they have actually stayed the same, but have all now got a LTV%. They have introduced a 2yr fixed at 4.49% with 1% product fee which seems pretty good.

sherer

not the news I was hoping for. My deal expires and if they had reduced their rates on the SVR would have stayed with them now the SVR is still the same despite a 1.5% cut in the base rate I think I will be off.

I know mortgages are based on LIBOR and not BoE rate but how can they expect to entice customers when the other banks are passing on the full cut and they make no change at all.

dpc197

Are we sure that just because they've changed their set of fixed rates, this means they will not be reducing the SVR? Have or will they announce something to that effect?

2.5% SVR discount finishes in March and was going to ride the SVR since I've got high LTV. If they're not going to pass the rate cut I might have to look elsewhere quick before equity is eroded further.

Bilko99_2

I just got off the phone with them after arranging to switch to their new two year tracker. My outstanding is circa 25k, and it's flexible so i pay 300 a month instead of 150. I should pay this off after about 8 years instead of 10. She told me the early repayment fee is 3% of the outstanding amount, but teh outstanding cannot go below 500.

has214

Hello, I've just been reading through my mortgage t&c's and spotted a clause which says"we may adjust your tracker margin to your advantage or disadvantage and will only do so when the BOE base rate drops below 3% and will have valid reasons to do so. I know that this is a 3% collar, but when they mention " valid reasons" are they referring to their borrowing costs ie. Libor? Seeing that libor has come down to 4.18%, would anyone know whether there's a real possibility that they're going to use this clause to adjust my terms. I'm sure there are many others in a similar situation to me.

Also they mention further that they don't have to reduce the increased margin, even though the rates start to rise. This is outrageous, meaning I would be paying more than when rates began to fall last year.

jaigo76

Has anyone got any latest news? Are A&L likely to reduce their mortgage rates? I suppose if they decide to keep them this high, the percentage is relative to the savings accounts rates which are probably be the best around at the moment!

sherer

no idea at the moment, the rates were changed last week so can't really see them changing the SVR any lower although it would be nice if they had some sort of statement on their web site if things are still under review or not.

thebigboss_2

sherer wrote: »

no idea at the moment, the rates were changed last week so can't really see them changing the SVR any lower although it would be nice if they had some sort of statement on their web site if things are still under review or not.

Is anyone out there trapped on the GMAC svr of 6.99%?

mrylandb

I would always check this page, as it contains their press releases http://www.alliance-leicester-group.co.uk/html/media/latest_releases.aspx

We're on a SVR -2.45% at the moment which is valid for another 6 months. No point in moving as the cost would more than outweigh any benefit, plus we are comfortable paying the actual rate of 4.49%. Like everyone else, we would like some confirmation as to what is going on - i.e. if they are not going to decrease their SVR, then please tell us

matt83uk

A&L were late in following the previous reduction, or rather late in announcing it (or technically half of it -0.25%), since most banks aren't putting the rate cut in place to the start of december it shouldn't make much difference. A&L are owned by the same people that own Abbey and as far as Im aware the mortgage portfolio are similar so I predict they will follow the same as Abbey (although they are under no obligation to do so).