A+L 4.95% fixed until Oct06 no tie in after.

webmasterpolo

This deal looks very good to me:

http://www.fool.co.uk/moneyreport/report.htm?source=umrlkeml300292

"Alliance & Leicester With a discount of 2.40% off our Basic Mortgage Rate, pay 4.44% for two years with no tie-in after the discount ends (6.8% APR). This market leading rate is available for up to 95% of the valuation of your home. Pay 4.95% fixed until 31 October 2006, with no tie-in after the fixed rate ends (6.9% APR). This Best Buy fixed rate mortgage is available for up to 95% of the valuation of your home."

I have a 2 year fixed mortgage which ends in November this year and l am looking for a replacement. The rate l got was 4.69%. With the higher rates around now, this rate looks very attractive, esp as there is no tie into the variable rate at the end.

What do you guys think of this deal?

payless

Rate is good BUT

What size of loan we looking at -

The variable product does not seem to include free val/ legals, so together with v high arrangement fee a lot of the savings could be wiped out in fees.

Annual interest calc on most A&L deals ( although some monthly slipping in- so check) and higher than average follow on base are other negs

If its pure rate you look at , you can get variable / trackers at 3.99% with no extended tie and free legals -
if your are prepared to pay the V high arrangement fees, although for a more standard size loan , the various remtg deals between 4.7- 5.2 % ( depending on fees/ ties required) might work out better.

Same with fixed rate - yeah cheap, but for "average size loans" a lender with free val, legals and lower arr fee may suit better

Remember to ask current lender for their "loyalty options"

webmasterpolo

Thanks for reminder Payless.

The amount is around £38K.

I'll ask C+G who are my current provider about thier options.

How much time do l need to allow to change providers? My fixed rate ends Nov 04.

payless

On a mortgage of that size
A&L arr fee, legals and val , could add up to over 3% of that loan size!

The options with no fees at all are likely to be the best options , - even though the rates are higher - but yes compare with C&G as well

Whilst straightforward cases can go thro' quickly, if were to move no harm in starting the ball anytime from now - but don't leave it more than 3/4 weeks.
Of course its easier to get deal agreed early and then slow it up to match tie ins rather than be rushed