Alliance & Leicester SVR concern

mrylandb

MarkyMarkD wrote: »

@mrylandb - before opting for an offset, because of bad savings rates, consider simply borrowing less money and not having any savings.

This was considered, but due to the fact we only have one income now and that I work in Financial Services, we would rather have the safety net of a years salary tucked away just in case the worst happens - we plan on overpaying each month to utilise the benefits that offsetting brings which will hopefully reduce the term somewhat.

I wouldn't want to have little or no savings to fall back on in the current climate

MarkyMarkD

Ok, good points. You can achieve the same - or almost the same - as an offset if you get a decent flexible mortgage, by borrowing the larger amount in the first place and then overpaying by the amount of savings straight away.

E.g. all A&L variable rate mortgages allow limitless overpayments, and then you can draw down, or underpay, or take payment holidays to the extent you are ahead.

99% of the benefits of offsetting but better rates (historically at least - I understand that A&L's rates are currently not too hot).

teeboy123

Hello - todays .5% drop reminded me that I hadden't seen anything about the Feb Drop, so I looked at the A+L site and it appears they have dropped their SVR from 5.09% to 4.99%. Hopefully we get a bit more from todays drop - but I doubt it!

Tony

riqi

Has anyone heard if A&L is going to keep the SVR at 4.99% until the rates go back up?

I'm sick of paying that much more than 0.5%!! I'm sure when the BoE puts the rate up, they not as slow to follow suit!! :mad: