Alliance & Leicester SVR concern

Fliss_M

I saw people posting about abbey I thought a&l may be close behind. So a 0.25% decrease, not surprising, they seem to have lead with half rate cuts. So I suspected it would only be this much.

spriggsy

My A&L mortgage, bought in Sep 07, states that I will be on a fixed rate of 6.14% for two years, at which point I will move onto a variable rate that is 1.99% above BOE base rate. Does this mean (if the interest rates stay the same) that I will be paying just 2.49% interest when I come out of my fixed rate in September this year?

Fliss_M

spriggsy wrote: »

My A&L mortgage, bought in Sep 07, states that I will be on a fixed rate of 6.14% for two years, at which point I will move onto a variable rate that is 1.99% above BOE base rate. Does this mean (if the interest rates stay the same) that I will be paying just 2.49% interest when I come out of my fixed rate in September this year?

No as that would be a 0.99% tracker, you would be on 3.49%. Which from what your on now will still be a substantial saving and a great rate from whats available currently.

photofleck

Hi,

I've got exactly the same deal (having just checked the small print). Bought my A&L fixed rate mortgage in Sept 07 at 6.14%, which will then revert to 1.99% above the base rate. They must have added on another 1% at some point! As Fliss M says, at the moment this would equate to 3.49%, which is still an excellent deal at the moment! Some people are predicting base rate will fall further by towards end of 09. Only concern is when rates eventually rise long-term (suspect I'm in -ve equity at the moment so can't sell or change deal very easily).

Anyway, still seriously good news for the moment!
:beer:

Fliss_M

photofleck wrote: »

Hi,

I've got exactly the same deal (having just checked the small print). Bought my A&L fixed rate mortgage in Sept 07 at 6.14%, which will then revert to 1.99% above the base rate. They must have added on another 1% at some point! As Fliss M says, at the moment this would equate to 3.49%, which is still an excellent deal at the moment! Some people are predicting base rate will fall further by towards end of 09. Only concern is when rates eventually rise long-term (suspect I'm in -ve equity at the moment so can't sell or change deal very easily).

Anyway, still seriously good news for the moment!
:beer:

Yes, you and me both. Am just hoping they can keep the rise to 5% or less. Ah well, cant change till house prices rise so why worry for now. Just overpay what you can, that will put equity back in and reduce your term. (I would love to do this, but credit cards are more urgent right now)

arunadasi

Fliss_M wrote: »

Yes that is weird. Well, if their only gonna charge you SVR at 2.49% I would keep shtum. Ether they have mucked up or theres another rate that kicked in at the end of the 2 year deal you signed in may 06.

Hey, guess what! I found another letter from A&L dated August 2006:

Dear...., I am pleased to confirm that..... your mortgage account has now been changed to the Annual Fee Free Long Term Brt+ 0.99%

At the time I didn't realise that Brt is Base Rate Tracker... now I know better and am VERY pleased :j that they definitely have not made a mistake! (I was getting worried....)

agile83

This is also good news for myself and partner. We are currently on a 5.87% fix until sept 09 - Hopefully we will be looking at 5% SVR by then. Fingers crossed.

We are currently on a 30 year mortgage - Would A & L have any reservations about putting us down to a 20 or 25 year mortgage if we asked? Could we negotiate this in september?

sundog

I wonder what the consequences will be for banks/ building societies like this who have never passed on the full bank rate cut cut since October 2008.

dmaidmen

Probably none....

Been following this thread for a while. I was on a 2Yr Fixed rate that ended in Sep 07. Switched to another 2Yr Fix but didn't realise until just know that the first deal I would have come out on BOE + .75 and the new deal i'm on the SVR. Gutted!

Fliss_M

dmaidmen wrote: »

Probably none....

Been following this thread for a while. I was on a 2Yr Fixed rate that ended in Sep 07. Switched to another 2Yr Fix but didn't realise until just know that the first deal I would have come out on BOE + .75 and the new deal i'm on the SVR. Gutted!

Dont beat yourself up too much, rates were 5.5-6% then, meaning you would be on 6.75% mortgage, then you would have been cursing the rate. Its just a swine now. The past 18 months wouldnt have been as kind as the past 4.