Alliance & Leicester...the next Northern Rock ??

seanh

Hi everyone,

Just a quick question if i may, for those more "savvy" to the UK financial market place.

I am looking to remortgage as my current deal has finished so i am onto the Nationwide variable rate.

I am looking for a 2/3 year fixed or capped rate so was looking at a deal with A&L who i have my current account with.

They had a deal (cant remember what it is off the top of my head !) and i got talking to some guys who i work with, one who replied "...i wouldnt touch A&L...its been in the papers that they will be the next bank to do a Northern Rock !!!!"

He said it had been in the papers and was on the cards but i havent seen or read anything of the sort so i just wondered if anyone on here has or is aware this.

If anyone has any thoughts on this then i would really like to read them before i remortgage.

Many thanks,
Sean

Rick62

Certainly their share price has dropped a lot recently, and more importantly their mortgage deals recently have not usually been competitive - have you checked what else is available, including from Nationwide who normally offer good retention products?

dunstonh

its been in the papers that they will be the next bank to do a Northern Rock !!!!"

The papers have said it. It has to be true then. They have said the same about many of the banks, including Barclays!

The UK media dont report the news any more. They make things up and try to make the news and offer opinion. You should never rely on the media as your source of knowledge. Even worse are workplace myths. Some of the most inaccurate comments you can hear come from the workplace.

A&L, like many other lenders, have withdrawn from active marketing of mortgages. So, its unlikely they will have a deal that is best for you. However, it doesnt matter if they or any other do a Northern Rock as it has no impact on borrowing. A&L are weak compared to Lloyds for example but I wouldnt be worrying about it if you have a mortgage.

homer_j_3

A&L has been in the papers because 30% (i think) of their share value was wiped. They did offer 100% + mortgages and like NR their securities that they have lent on will be quality lending.

They did offer sub prime deals but these were immediately sold to SPML and these were never held under A&L.

The problem is that no one can tell you if another bank is going to end up like NR - The funding of lending has been limited now with the credit crunch and A&L have more or less withdrawn from actively seeking new business so they are looking to clearly consolidate their position.

On the off chance that they did end up like NR - You have to ask what the impact of this would ACTUALLY mean to you. You are looking at fixed/capped deals so you are looking to control your interest rate - nobody with NR on a fixed deal has had their t&c's broken.

You should just look to get the most suitable deal for you specifically - if you are still worried, why not look at Building Societies rather than Banks?