Alliance and Leicester SVR

MasterOfNinja

Hi

I was wondering if people knew what A&L are doing with their SVR - it is currently at 4.99%, whereas other banks have theirs lower. I can comfortably pay off my mortgage at this rate, however I'm not eligible for better rates or fixes at my 85% LTV. With the clamour to fix rates now with the possibility of rates going up, how likely do people think that A&L will be quick to hike their rates, especially since they haven't lowered them?

Thanks

dmaidmen

I doubt they will lower it any further. There's another thread discussing the anoyingly high SVR here

opinions4u

MasterOfNinja wrote: »

I was wondering if people knew what A&L are doing with their SVR - it is currently at 4.99%, whereas other banks have theirs lower.

They are charging more than other banks. You have answered your own question.

I can comfortably pay off my mortgage at this rate, however I'm not eligible for better rates or fixes at my 85% LTV.

Consider remortgaging elsewhere then.

With the clamour to fix rates now with the possibility of rates going up, how likely do people think that A&L will be quick to hike their rates, especially since they haven't lowered them?

A&L probably have an issue with wholesale funding from the money markets and also the risk profile of their mortgage book.

One way to address what may be perceived as a riskier mortgage book would be to charge a higher rate of interest to mitigate that risk.

If they are struggling to maintain funding for their lending, they need to reduce the size of their mortgage book. One way to achieve this is to charge a high rate in order to encourage their borrowers to seek finance elsewhere.

I would be surprised if their SVR becomes competitive again in the near future.

Booradley_2

So whats a good svr then? My fix is ending soon (4.99%) and my provider is quoting 5.95% svr. The Darlington. Is this worth than average?

Boo

opinions4u

Booradley wrote: »

So whats a good svr then? My fix is ending soon (4.99%) and my provider is quoting 5.95% svr. The Darlington. Is this worth than average?

Lloyds and C&G are charging 2.5%, Nationwide 2.5%, Halifax are at 3.5%.

I'd say 3.5% is "mid pack". Here's a BBC linky to help.

Is Darlington worse than average? Oh yes.

Remortgage elsewhere if your equity allows. I'd see a reputable whole of market broker in the next few days if I was in your position.