Alliance and Leicester Rip OFF

Fliss_M

So what are we expecting them to do? I ask as currently my deal is set to end in feb, but I took out a 95% and I am not gonna risk moving as best case is that my house is still worth the same. And I doubt there are any 95% deals out there worth having anyway.

Anybody have any idea if I will be offered anything or just stuck on variable?

alchemistkevin

Fliss_M wrote: »

So what are we expecting them to do? I ask as currently my deal is set to end in feb, but I took out a 95% and I am not gonna risk moving as best case is that my house is still worth the same. And I doubt there are any 95% deals out there worth having anyway.

Anybody have any idea if I will be offered anything or just stuck on variable?

Most of the fixed deals these days are worse than A&L SVR and no matter where you are, the house prices would've fallen.

Stay put until you get a better rate.

I'm waiting for A&L to lower rates but we can't be sure what they will do.

matt83uk

You almost certainly won't be offered anything at 95% LTV, you'll probably be in negative equtity now, if you had 2 year deal its extremely unlikely given last three months your house is worth the same, maybe a little gain on a 3 year. Regardless of any small movement on the 95%, you won't have reduced to under 85% LTV which is where most of the fixed/variables deals are had now.

Unfortunately, it means you'll like move onto the A&L SVR, which as long as they pass on some or all of the reduction then its not too bad (infact for the next twelve months it will probably undercut the fixed/variable deals available now and with no fees), their sister bank has apparently committed to a full rate reduction which if I remember correctly will put Abbey at 5.44% in December, B&B is slightly different, but just because they all fall under the same umbrella doesnt mean equality is guaranteed (fingers crossed). At the moment A&L its 6.94%, if you call you get a recorded annoucement that they haven't made a decision yet, but I expect it will be in the range of 1-1.5% (reflecting competition rather than underlying economics) and annouced in next week or two.

Stick with the SVR when you move onto on feb unless you find a great deal on such a high LTV and evaluate after six months.

jaigo76

Supposing A&L reduce their SVR rates on 1st December, are they likely to reduce their fixed rates also? I've just applied for the premier 2yr fixed rate 4.79% (which is a pretty good deal) but would need to send the papers back straight away to be on it for next month. I'm wondering whether to sit on the SVR for another month to see if the fixed rates come down. It might be a risk worth taking?

Fliss_M

Well my current rate is 5.59 from a 3 year deal + cash back. I have EXTREAMLY high suspisions am in negative equity at the mo, but as with things like this you dont really want to know for certain. And if I stay with A&L am I right in thinking they wont bother with a valuation?

Well fingers tightly crossed for a 1.5% drop of their rate, that puts it below my current, especially with the hint of a drop to as low at 2% in the next month or so.

At least they still saying they havent made up their minds yet. Watch this space I guess

matt83uk

Yes A&L will automatically move you to their SVR, no valuation, they can't do much else with your mortgage unless they sell it on etc.. unless you're one of the very few lucky people that had in their terms that they revert to a tracker at end of term (check your docs). House prices have fallen very very aggressively in the last few months, and will continue to for a while (i.e. including upto Feb), I've seen houses discounted in our street by as much as 30k over just the last three months - its desperate times (down 189k to 155k - 189k already taken into account decrease of prior 12 months), a lot of homeowners are in denial at the moment.

Fliss_M

I doubt very much am one of them! hehe.
Well to boot it was a brand new house, so was already marked up in 2006. Am not really bothered about the fall in the price, its not like I intend to sell in the next 5 years and its a house not a flat so I imagine it should come back up again, I just have to wait it out. I just prefer fixed rate as I know where I am, and with full time nursery fees and the below repayments, its a close thing for being able to afford the repayments. But I tried the 'call them early' bit and they wouldnt give me any rates (which in light of recent events as this was back in sept was a good thing) till 4 weeks before my current rate is up.

Whats really frustrating is that when I took out the deal it was feb 06, but the house wasnt built, so the money wasnt taken, so the repayments didnt start, till sept 06! So in my eyes the deal should runtill then as I havent made a full 3 years worth of repayments. But I tried this with them and they effectivly said 'on you bike', ah well, nothing ventured eh.