Alliance & Leicester 4.44%

viip

Just had a leaflet through the post offering the following:-

Initial rate 0.06% below BOE for 2 years, currently 4.44%
then
0.99% above BOE currently 5.49%
Product fee £499

Plus £250 cashback for being a Premier Current Account Customer, as long as I apply by 1 Sep.

Currently got a first direct offset that’s out of its initial 2.99% (6 months) and is now @ 5.5%, I was tempted to take our ISAs around £32000 and use them in offset but not too sure if its a good idea in the longer term.

We have around £19000 in 0% credit cards, that is being used to offset.

Now wondering would it not be better to go for the A&L deal, leave ISAs earning around 4.7% and tax free?

The leaflet also states that you can make overpayments, and then borrow back against any credit built up. So am I right in thinking that this means that in effect I am getting an offset albeit at a much better rate? I can't see any mention of limits when it comes to overpayments.

I have contacted FD to ask them for a better deal as I would prefer to deal with them, A&L insistence on their 0845 number is a touch annoying. When I mentioned that I was keen on moving they told me that a supervisor will be contacting me in the next day or so to discuss things, but don't hold out much hope for them offering me a much better rate but we will see.

Financial_Savvy

Do you happen to know the redemption fee with both your current provider and A+L?

Also there may be a better place for you ISA.

As for the actual product there are some excellent mortgage gurus that can advise.....