Alliance & Leicester to Santander

Unclefoobar

I have two parts to my mortgage with A&L.


Approx 70k @ BOE + 0.75% lifetime tracker


Approx 60k @ 3.39% fixed rate 2 year fix (finishing next month)


I have spoken with Santander who have offered to transfer my entire mortgage to the BOE + 0.75% lifetime tracker saving me about £70 a month (I fully understand this will increase if rates go up)


No fees, only downside is I can't make regular monthly overpayments, just lump sumps of £500 but I can save the extra money and make overpayments every few months.


Apparently I've been offered this deal as I'm such a good customer, whereas I suspect they just want to get me off their A&L books.


Does anyone know if I would be making a mistake leaving A&L?


I'm happy with the figures and I know my payments will increase if rates increase but not sure if I'm missing something.


I have 23 years to go on my mortgage but I hope to reduce that with overpayments.

Thrugelmir

The old A&L mortgage book is being wound down. So Santander are in the position of offering what ever they wish to, in order to retain business or not.

A rate of 0.75% above base for life is extremely good. Unlikely that you'll obtain this rate in the open market ever again. So there's no reason not to take it.

Personally I would remain it for the remaining term of the mortgage. Whatever the roller coaster ride maybe in the future.

Unclefoobar

Thrugelmir wrote: »

A rate of 0.75% above base for life is extremely good. Unlikely that you'll obtain this rate in the open market ever again. So there's no reason not to take it.

Personally I would remain it for the remaining term of the mortgage. Whatever the roller coaster ride maybe in the future.

Thanks for that, confirmed what I had concluded too.:D