Alliance Leicester Guide to remortgaging

You may want to switch your mortgage to enjoy a better rate, or you may want to borrow extra money for some home improvements, but what is remortgaging really all about?
What is a remortgage?
Remortgaging is the process of moving your mortgage to a new lender without moving home – you just take a new mortgage to pay off your current one.
Why should you think about remortgaging?
By remortgaging you can take advantage of the current mortgage deals on offer, and…
…you could save money
Remortgaging is a great way to save money. Find out what interest rate you are paying on your current mortgage, and see if you could get a lower rate with Alliance & Leicester and save money.
…you could raise money
Remortgaging can help you release any money locked up in your home. If you are looking to raise a bit of extra cash for home improvements, a well deserved holiday or even a new car, remortgaging may be a cost effective option. And if you can also save money by lowering your interest rate, your mortgage payments could cost less than you think.
…you could consolidate your debt
Remortgaging, taking advantage of lower interest rates and borrowing a little extra can be a cost effective way to consolidate any expensive debt you may have e.g. credit and store cards or loans.
…you could avoid moving home
The news is full of rising house prices, so if a new home seems out of reach, why not improve your current home? You could remortgage to raise money to add an extension – you may increase the value of your home too!
When should I remortgage?
If you are coming to the end of your current deal – maybe a fixed or discount rate, or if you are paying your lenders Standard Variable Rate start thinking about remortgaging and saving money now.
The remortgage process
Step 1 Decide if and why you want to remortgage. Do you want to remortgage to borrow more money? If so you need to make sure there is enough equity in your property.
Or, do you want to save money or look for a better mortgage deal? Have a look at our range of mortgages or use our Quick Quote calculator to see if you could save money by remortgaging to Alliance & Leicester.
Step 2 Contact your current lender for a redemption statement, and do your maths! Make sure you will be better off by remortgaging, there will be fees and charges involved so make sure the savings outweigh the costs.
Step 3 Take a look at our mortgages and find a deal to suit your needs. View our mortgage range. If you are not sure what mortgage you want, we can help you choose

Step 4 Produce your Key Facts Illustration for your chosen mortgage – this will tell you everything you need to know to make a decision about your mortgage. Step 5 Apply for your mortgage, call us on 0800 056 3254† THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT †Our lines are open 8am-9pm weekdays and 9am-5pm Saturdays. Calls are free from UK landlines although call charges may vary from mobile phones. Mortgages are subject to status, valuation, availability and our lending policy.

Link to previous articles: Alliance Leicester guide to moving home Alliance Leicester Guide: Buying your first home Guide to Alliance & Leicester Mortgages Alliance & Leicester Mortgage Loans FAQ-1 Alliance Leicester Mortgage Jargon Buster Alliance Leicester Lifetime Base Rate Tracker

Alliance Leicester guide to moving home-2

This is part II fo the article Alliance Leicester guide to moving home . Please read the first part before continuing with this one!

Apply for your mortgage

So, your offer has been accepted, now you need the mortgage. The sooner you apply for your mortgage the better.
Need help finding the mortgage for you? Read our Guide to mortgages or we can help you choose
Don’t forget, before you can exchange contracts, you need to have your mortgage in place with a formal offer from your lender.

Don’t forget insurance

Protect your investment - make sure your home is adequately insured. We can arrange insurance for your Buildings & Contents and sort out Life & Critical illness and Mortgage Payment Cover to protect you should you be unable to work due to accident, sickness or unemployment. Speak to your Mortgage Specialist for a quote.

What happens next?

When you have submitted your application we carry out various checks on you and your property. We will value your property to tell us how much it is worth for lending purposes. Some of our mortgages come with a FREE Basic Mortgage Valuation (FREE valuation means the valuation fee is paid to us with your application and we will then refund this to you on mortgage completion), but you may prefer to have a more detailed survey called a Homebuyers Report.

Making it all happen

The conveyancing
Conveyancing is the legal process of transferring a property from one person to another, so you should find a solicitor or licensed conveyancer to do the work for you.
Alternatively, Alliance & Leicester offer a conveyancing referral service which is managed and provided by Golds Panel Management.
Golds can offer: -
• A solicitors' firm quickly and easily, selected by a name you can trust.
• A verbal indicative quote from an advisor straightaway, with a written quote to follow.
• You can check your case 24 hours a day, 7 days a week, via online tracking.
• No completion - no fee, if you don't move, you don't pay the legal fees.
While we are processing your mortgage application, your conveyancer or legal representative will be working away too. They will carry out searches on your property and surrounding area and will organise the contracts between you and the seller.

Exchange contracts

This is the point where both the buying and selling parties sign their copies of the contract, which are exchanged by their respective legal representatives. This is also when you pay your deposit to your legal representative. You are now legally bound to proceed with buying the property, and if you do pull out the seller can keep your deposit.

Completion

Completion, the day you’ve been waiting for! This is where the balance of the money is transferred to you from your buyer, and your money is transferred to your seller. The deeds are given to the buyer, or their solicitor. And, most importantly, the keys are handed over allowing you to move into your new home.
Our guide to moving home is only relevant for buying a home in England and Wales

Existing mortgage customers changing their product will incur a Mortgage Review Fee of £250 unless otherwise stated. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. †Our lines are open 8am-9pm weekdays and 9am-5pm Saturdays. Calls are free from UK landlines although call charges may vary from mobile phones. Mortgages are subject to status, valuation, availability and our lending policy.

Link to previous articles: Alliance Leicester guide to moving home Alliance Leicester Guide: Buying your first home Guide to Alliance & Leicester Mortgages Alliance & Leicester Mortgage Loans FAQ-1 Alliance Leicester Mortgage Jargon Buster Alliance Leicester Lifetime Base Rate Tracker

Alliance Leicester guide to moving home

There’s a lot to think about when selling your home and moving to a new property. It can be very costly, and take a lot of time and effort. This guide is designed to help you make the process as stress free as possible.

Selling your home

Firstly you need to think about how much you are going to put your home on the market for. Be realistic, it’s a common mistake to overprice your property, so it helps to get information about similar properties in your area. Remember - your estate agent does not value your property, they just specify an asking price. If you want a 'true' valuation, you'll need a qualified surveyor.
It may also be a good idea to decorate your house when you decide to sell it. First impressions count and can affect how fast your home sells, and its sale price.
Once you have your asking price, it's time to advertise your home - if you are using an estate agent they will take care of this for you. A cheaper, and increasingly popular, alternative is to advertise your house on one of the many property websites available.
Now you need to wait for potential buyers to come and view your property. Depending on the market, this can be a lengthy process.
It helps to keep your home neat and tidy – buyers need to see the property not your clutter. Think about what you look out for when viewing properties and what turns you off, chances are your buyers look out for similar things.
From 10 September 2007, the law will require all sellers putting a home with three or more bedrooms on the market in England & Wales to provide a Home Information Pack.

Buying your new home Your property is on the market, you may have already had some viewing or even some offers. If you haven’t already started, it’s time to start seriously looking for your next property. Work out how much you can afford. Your circumstances have probably changed since you bought your current home, so take the time to work out your budget now. Use our Borrowing calculator to give you an idea of how much you can afford to borrow. Find a property Finding the right home for you can be a long process, so check out the areas you are thinking of living in and visit local estate agents and use the internet to find properties for sale. If your current home is already on the market, and you have an offer, you’re in a good position to start making offers on properties yourself, so when you have found the home you want – make an offer.

Link to previous articles: Alliance Leicester Guide: Buying your first home Guide to Alliance & Leicester Mortgages Alliance & Leicester Mortgage Loans FAQ-1 Alliance Leicester Mortgage Jargon Buster Alliance Leicester Lifetime Base Rate Tracker Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan

Alliance Leicester Guide: Buying your first home

Buying your first home is a daunting task but it can be exciting too and Alliance & Leicester are committed to helping you every step of the way. To make life easier for first time buyers, we have provided you with a comprehensive guide for first time buyers and a list of the key steps to getting your first mortgage.
Firstly, why not take a look at our comprehensive Guide to Buying Your First Home which gives you advice and tips on topics such as working out much you can borrow right through to moving in to your new home.

So what do I do now?

If you already know what you want why not check out our Mortgage Interest Rates If you want more information then continue reading to find out more about the key steps to applying for a mortgage. Whatever stage you are at we are committed to helping you every step of the way.

Step 1 - Work out how much you can afford

Work out your budget and be realistic, it’s important that you think about everything else you have to pay out every month, not just your mortgage – things like bills, council tax and loans. It soon adds up.
Use our Borrowing calculator to give you a better idea of how much you can afford to borrow.

Step 2 - Find a property

If you haven’t already, you need to find a property! Finding the right home for you can be a long process, so check out the areas you are thinking of living in and visit local estate agents and use the internet to find properties for sale.
From 10 September 2007, the law will require all homes with three or more bedrooms, put on the market in England & Wales to have a Home Information Pack. For buyers, the Home Information Pack provides important information about the properties they are considering buying.
When you have found the home you want – make an offer.

Step 3 - Apply for your mortgage

So, your offer has been accepted, now you need the mortgage to buy it. The sooner you apply for your mortgage the better.
Need help finding the mortgage for you? Read our Guide to mortgages or we can help you choose
Don’t forget, before you can exchange contracts, you need to have your mortgage in place with a formal offer from your lender.

Don’t forget insurance

Protect your investment - make sure your home is adequately insured. We can arrange insurance for your Buildings & Contents and sort out Life & Critical illness and Mortgage Payment Cover to protect you should you be unable to work due to accident, sickness or unemployment. Speak to your Mortgage Specialist for a quote.

What happens next?

When you have submitted your application we carry out various checks on you and your property. We will value your property to tell us how much it is worth for lending purposes. Some of our mortgages come with a FREE Basic Mortgage Valuation (Free valuation means the valuation fee is paid to us with your application and we will then refund this to you on mortgage completion) but you may prefer to have a more detailed survey called a Homebuyers Report.

Making it all happen - the conveyancing

Conveyancing is the legal process of transferring a property from one person to another, so you should find a solicitor or licensed conveyancer to do the work for you.
Alternatively, Alliance & Leicester offer a conveyancing referral service which is managed and provided by Golds Panel Management.
Golds can offer: -
• A solicitors' firm quickly and easily, selected by a name you can trust.
• A verbal indicative quote from an advisor straightaway, with a written quote to follow.
• You can check your case 24 hours a day, 7 days a week, via online tracking.
• No completion - no fee, if you don't move, you don't pay the legal fees.
While we are processing your mortgage application, your conveyancer or legal representative will be working away too. They will carry out searches on your property and surrounding area and will organise the contracts between you and the seller.

Exchange contracts

This is the point where both the buying and selling parties sign their copies of the contract, which are exchanged by their respective legal representatives. This is also when you pay your deposit to your legal representative. You are now legally bound to proceed with buying the property, and if you do pull out the seller can keep your deposit.

Completion

Completion, the day you’ve been waiting for! This is where the balance of the money is transferred from buyer to seller. The deeds are given to the buyer, or their solicitor. And, most importantly, the keys are handed over allowing you to move into your new home. Our guide to buying your first home is only relevant for buying a home in England and Wales Existing mortgage customers changing their product will incur a Mortgage Review Fee of £250 unless otherwise stated. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. †Our lines are open 8am-9pm weekdays and 9am-5pm Saturdays. Calls are free from UK landlines although call charges may vary from mobile phones. Mortgages are subject to status, valuation, availability and our lending policy.

Link to previous articles: Guide to Alliance & Leicester Mortgages Alliance & Leicester Mortgage Loans FAQ-1 Alliance Leicester Mortgage Jargon Buster Alliance Leicester Lifetime Base Rate Tracker Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan

Alliance & Leicester Mortgage Loans FAQ -2

Continuing further from the part 1 of the Alliance & Leicester Mortgage Loans FAQ, following is the remaining set of questions

Q. Are there any age restrictions on making an application?

A. To apply for a mortgage with Alliance & Leicester you must be at least 18 years of age. If your income is needed to support the loan, you should be aged no more than 75 at the end of your mortgage term. For example, if you are taking a mortgage over a 25 year term, the oldest you should be is 50 years old.
Q. How do I repay Capital with an Interest Only Mortgage?

A. An interest only mortgage is where you only repay the interest on your mortgage debt each month. Alongside this you will need to put money into a separate investment vehicle which is designed to grow sufficiently to pay off your loan when your mortgage comes to an end. You are responsible for the repayment of the capital when the mortgage reaches the end of its term. You may want to seek professional advice on the investment vehicle.

Any capital repayments you make during the term of your mortgage are subject to the terms and conditions of your mortgage product and there may be an Early Repayment Charge.
Q. Can I borrow money to buy a property abroad?

A. Alliance & Leicester will lend on properties situated in England, Wales, Scotland and Northern Ireland only.
Q. Can I have a ‘buy-to-let’ mortgage with Alliance & Leicester?

A. Alliance & Leicester does not arrange mortgages for buy to let or commercial properties.
Q. Does Alliance & Leicester offer a conveyancing referral service?

A. Alliance & Leicester offer a conveyancing referral service which is managed and provided by Golds Panel Management. Golds can refer you to an approved solicitors' firm quickly and easily and give you an idea of the likely costs involved straightaway. Q. What is a HIP (Home Information Pack) and what does it contain? A. From 10 September 2007, the law will require all homes with three or more bedrooms, put on the market in England & Wales to have a Home Information Pack. The HIP is a set of documents providing important information about a property, such as its energy efficiency and other information to help the home buying and selling process. For more information visit Home Information Packs (Link to http://www.homeinformationpacks.gov.uk).

Link to previous articles: Alliance & Leicester Mortgage Loans FAQ-1 Alliance Leicester Mortgage Jargon Buster Alliance Leicester Lifetime Base Rate Tracker Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan Alliance Leicester 2 Year Fixed Mortgage Plan

Alliance Leicester Lifetime Base Rate Tracker Mortgage Plan

Mortgage Plan : Alliance Leicester Lifetime Base Rate Tracker Mortgage Plan

Initial Interest Rate: 6.39%

Rate for remaining term (Variable): 6.39%

Overall cost of comparison (APR): 6.7%

Early repayment charges Apply?: No

Product Fee: £999

Tracks the Bank of England Base Rate (+0.64%) for the term of the mortgage Loans available between £25,000 and £250,000.

Link to previous articles: Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan Alliance Leicester 2 Year Fixed Mortgage Plan Alliance Leicester 2 Year Fixed Buy To Let Fixed mortgage Alliance Leicester 5 Year Discount Max LTV 90% Mortgage Plan Alliance Leicester 2 Year Base Rate Tracker FeeSaver

Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan

Mortgage Plan : Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan

Initial Interest Rate: 6.24% for two years

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.9%

Early repayment charges Apply?: Yes *

Product Fee: £999

Keep your payments lower for the first two years of your mortgage with a rate of Bank of England Base Rate +0.49%. Then Bank of England Base Rate +2.14% for the remainder of the term (variable) 10% Overpay facility. Loans available between £25,000 and £250,000. *Early Repayment Charge: You are only tied into your mortgage during the first two years. Repay all or part of your mortgage in years one to two and pay a fee of 5% of the amount repaid.

Link to previous articles: Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan Alliance Leicester 2 Year Fixed Mortgage Plan Alliance Leicester 2 Year Fixed Buy To Let Fixed mortgage Alliance Leicester 5 Year Discount Max LTV 90% Mortgage Plan Alliance Leicester 2 Year Base Rate Tracker FeeSaver Alliance Leicester 2 Year Base Rate Tracker Max LTV 90%

Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan

Mortgage Plan : Alliance Leicester 2 Year Base Rate Tracker Mortgage Plan

Initial Interest Rate: 5.94% for two years

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.9%

Early repayment charges Apply?: Yes *

Product Fee: £1,999

Loans available between £25,000 and £250,000. *Early Repayment Charge: You are only tied into your mortgage during the first two years. Repay all or part of your mortgage in years one to two and pay a fee of 5% of the amount repaid. Keep your payments lower for the first two years of your mortgage with a rate of Bank of England Base Rate +0.19%. Then Bank of England Base Rate +2.14% for the remainder of the term (variable) 10% Overpay facility.

Link to previous articles: Alliance Leicester 2 Year Fixed Mortgage Plan Alliance Leicester 2 Year Fixed Buy To Let Fixed mortgage Alliance Leicester 5 Year Discount Max LTV 90% Mortgage Plan Alliance Leicester 2 Year Base Rate Tracker FeeSaver Alliance Leicester 2 Year Base Rate Tracker Max LTV 90% Alliance Leicester Premier 2 Year Base Rate Tracker Max LTV 90% Mortgage Plan

Alliance Leicester 2 Year Base Rate Tracker FeeSaver

Mortgage Plan : Alliance Leicester 2 Year Base Rate Tracker FeeSaver

Initial Interest Rate: 6.24% for two years

Rate for remaining term (Variable): 6.74%

Overall cost of comparison (APR): 6.9%

Early repayment charges Apply?: Yes*

Product Fee: £0

Keep your payments lower for the first two years of your mortgage with a rate of Bank of England Base Rate +0.49%.

Then Bank of England Base Rate 2.14% for the remainder of the term (variable)

Loans available between £25,000 and £999,999.

FREE Valuation (The valuation fee is paid to us with your application and then refunded upon completion of the mortgage).

Remortgage customers can select our Mortgage Transfer Service or £250 cashback.

Fully Flexible - you can overpay, and with the overpayments you build up, you can borrow money back, take payment holidays, or pay less in some months. *Early Repayment Charge: You are only tied into your mortgage during the first two years. Repay all or part of your mortgage in years one to two and pay a fee of 3% of the amount repaid.

Link to previous articles: Alliance Leicester 2 Year Base Rate Tracker Max LTV 90% Alliance Leicester Premier 2 Year Base Rate Tracker Max LTV 90% Mortgage Plan Alliance Leicester 5 Year Fixed FeeSaver Mortgage Plan Alliance Leicester 5 Year Fixed Max LTV 90% Alliance Leicester 3 Year Fixed FeeSaver Mortgage Plan Alliance Leicester 3 Year Fixed Max LTV 90%

Alliance Leicester 2 Year Base Rate Tracker Max LTV 90%

Mortgage Plan : Alliance Leicester 2 Year Base Rate Tracker Max LTV 90%

Initial Interest Rate: 5.89% for two years

Rate for remaining term (Variable): 6.74%

Overall cost of comparison (APR): 6.8%

Early repayment charges Apply?: Yes*

Product Fee: £599

Keep your payments lower for the first two years of your mortgage with a rate of Bank of England Base Rate +0.14%.

Then Bank of England Base Rate 2.14% for the remainder of the term (variable)

Loans available between £25,000 and £999,999.

Fully Flexible - you can overpay, and with the overpayments you build up, you can borrow money back, take payment holidays, or pay less in some months.

*Early Repayment Charge: You are only tied into your mortgage during the first two years. Repay all or part of your mortgage in years one to two and pay a fee of 3% of the amount repaid.

Link to previous articles: Alliance Leicester Premier 2 Year Base Rate Tracker Max LTV 90% Mortgage Plan
Alliance Leicester 5 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester 5 Year Fixed Max LTV 90%
Alliance Leicester 3 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester 3 Year Fixed Max LTV 90%
Alliance Leicester 2 Year Fixed FeeSaver Mortgage Plan

Alliance Leicester Premier 2 Year Base Rate Tracker Max LTV 90%

Mortgage Plan : Alliance Leicester Premier 2 Year Base Rate Tracker Max LTV 90% Mortgage Plan

Initial Interest Rate: 5.89% for two years

Rate for remaining term (Variable): 6.74%

Overall cost of comparison (APR): 6.8%

Early repayment charges Apply?: Yes*

Product Fee: £499

Exclusive mortgage deals for new and existing Premier and Premier Direct Current Account customers taking out a new mortgage.

Keep your payments lower for the first two years of your mortgage with a rate of Bank of England Base Rate +0.14%.

Then Bank of England Base Rate 2.14% for the remainder of the term (variable)

Loans available between £25,000 and £999,999.

Fully Flexible - you can overpay, and with the overpayments you build up, you can borrow money back, take payment holidays, or pay less in some months.

*Early Repayment Charge: You are only tied into your mortgage during the first two years. Repay all or part of your mortgage in years one to two and pay a fee of 3% of the amount repaid.

Link to previous articles: Alliance Leicester 5 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester 5 Year Fixed Max LTV 90%
Alliance Leicester 3 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester 3 Year Fixed Max LTV 90%
Alliance Leicester 2 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester Year Fixed Max LTV 90% Mortgage Plan

Alliance Leicester 5 Year Fixed FeeSaver Mortgage Plan

Mortgage Plan : Alliance Leicester 5 Year Fixed FeeSaver Mortgage Plan

Initial Interest Rate: 6.24% until 30/11/12

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.5%

Early repayment charges Apply?: Yes*

Product Fee: £0

Loans available between £25,000 and £999,999, fixed until 30 November 2012.

FREE Valuation (The valuation fee is paid to us with your application and then refunded upon completion of the mortgage).

Remortgage customers can select our Mortgage Transfer Service or £250 cashback.


10% Overpay facility.

*Early Repayment Charge: You are only tied into your mortgage during the fixed period.

Repay all or part of your mortgage before 30 November 2012 and pay a fee of 3% of the amount repaid.

Link to previous articles:
Alliance Leicester 5 Year Fixed Max LTV 90%
Alliance Leicester 3 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester 3 Year Fixed Max LTV 90%
Alliance Leicester 2 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester Year Fixed Max LTV 90% Mortgage Plan
Alliance Leicester Premier 2 Year Fixed Max LTV 90% Mortgage Plan

Alliance Leicester 5 Year Fixed Max LTV 90%

Mortgage Plan : 5 Year Fixed Max LTV 90%

Initial Interest Rate: 5.99% until 30/11/12

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.4%

Early repayment charges Apply?: Yes*

Product Fee: £599

Loans available between £25,000 and £999,999, fixed until 30 November 2012.

10% Overpay facility.

*Early Repayment Charge: You are only tied into your mortgage during the fixed period.

Repay all or part of your mortgage before 30 November 2012 and pay a fee of 3% of the amount repaid.

Link to previous articles:
Alliance Leicester 3 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester 3 Year Fixed Max LTV 90%
Alliance Leicester 2 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester Year Fixed Max LTV 90% Mortgage Plan
Alliance Leicester Premier 2 Year Fixed Max LTV 90% Mortgage Plan
Other Related Link: Alliance Leicester Premier Fixed Rate mortgages

Alliance Leicester 3 Year Fixed Max LTV 90%

Mortgage Plan : Alliance Leicester 3 Year Fixed Max LTV 90%

Initial Interest Rate: 5.99% until 30/11/10

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.7%

Early repayment charges Apply?: Yes*

Product Fee: £599

Loans available between £25,000 and £999,999, fixed until 30 November 2010.

10% Overpay facility.

*Early Repayment Charge: You are only tied into your mortgage during the fixed period.

Repay all or part of your mortgage before 30 November 2010 and pay a fee of 3% of the amount repaid.

Link to previous articles:
Alliance Leicester 2 Year Fixed FeeSaver Mortgage Plan
Alliance Leicester Year Fixed Max LTV 90% Mortgage Plan
Alliance Leicester Premier 2 Year Fixed Max LTV 90% Mortgage Plan
Other Related Link: Alliance Leicester Premier Fixed Rate mortgages
Alliance Leicester Premier Tracker mortgages
Alliance Leicester 2 Year Fixed mortgage Plan

Alliance Leicester 2 Year Fixed FeeSaver Mortgage Plan

Mortgage Plan : Alliance Leicester 2 Year Fixed FeeSaver Mortgage Plan

Initial Interest Rate: 6.23% until 30/11/09

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.9%

Early repayment charges Apply?: Yes*

Product Fee: £0

Loans available between £25,000 and £999,999, fixed until 30 November 2009.

FREE Valuation (The valuation fee is paid to us with your application and then refunded upon completion of the mortgage).

Remortgage customers can select our Mortgage Transfer Service or £250 cashback.

10% Overpay facility.

*Early Repayment Charge: You are only tied into your mortgage during the fixed period.

Repay all or part of your mortgage before 30 November 2009 and pay a charge of 3% of the amount repaid.

Link to previous articles: Alliance Leicester Year Fixed Max LTV 90% Mortgage Plan
Other Related Link: Alliance Leicester Premier 2 Year Fixed Max LTV 90% Mortgage Plan
Alliance Leicester Premier Fixed Rate mortgages
Alliance Leicester Premier Tracker mortgages
Alliance Leicester 2 Year Fixed mortgage Plan

Alliance Leicester Year Fixed Max LTV 90%

Mortgage Plan : 2 Year Fixed Max LTV 90%

Initial Interest Rate: 5.87% until 30/11/09

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.8%

Early repayment charges Apply?: Yes*

Product Fee: £599

Loans available between £25,000 and £250,000, fixed until 30 November 2009.

10% Overpay facility.

*Early Repayment Charge: You are only tied into your mortgage during the fixed period.

Repay all or part of your mortgage before 30 November 2009 and pay a charge of 3% of the amount repaid.

Link to previous article: Alliance Leicester Premier 2 Year Fixed Max LTV 90% Mortgage Plan
Other Related Link: Alliance Leicester Premier Fixed Rate mortgages
Alliance Leicester Premier Tracker mortgages
Alliance Leicester 2 Year Fixed mortgage Plan

Alliance Leicester 2 Year Fixed mortgage Plan

Mortgage Plan : 2 Year Fixed

Initial Interest Rate: 5.73% until 30/11/09

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.8%

Early repayment charges Apply?: Yes*

Product Fee: £999

Loans available between £25,000 and £250,000, fixed until 30 November 2009.

10% Overpay facility.

*Early Repayment Charge: You are only tied into your mortgage during the fixed period.

Repay all or part of your mortgage before 30 November 2009 and pay a charge of 3% of the amount repaid.

Link to previous article: Alliance Leicester Premier 2 Year Fixed Max LTV 90% Mortgage Plan
Other Related Link: Alliance Leicester Premier Fixed Rate mortgages
Alliance Leicester Premier Tracker mortgages

Alliance Leicester Premier 2 Year Fixed Max LTV 90% Mortgage Plan

Mortgage Plan : Premier 2 Year Fixed Max LTV 90%

Initial Interest Rate: 5.87% until 30/11/09

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.8%

Early repayment charges Apply?: Yes*

Product Fee: £499

Exclusive mortgage deals for new and existing Premier and Premier Direct Current Account customers taking out a new mortgage.

Loans available between £25,000 and £500,000, fixed until 30 November 2009.

10% Overpay facility.

*Early Repayment Charge: You are only tied into your mortgage during the fixed period.

Repay all or part of your mortgage before 30 November 2009 and pay a charge of 3% of the amount repaid.

Link to previous article: Alliance Leicester Premier Tracker mortgages
Other Related Link: Alliance Leicester Premier Fixed Rate mortgages

Alliance Leicester Premier Tracker mortgages

Mortgage Plan : Premier 2 Year Base Rate Tracker Max LTV 90%

Initial Interest Rate: 5.89% for two years

Rate for remaining term (Variable): 6.74%


Overall cost of comparison (APR): 6.8%


Early repayment charges Apply?: Yes*

Product Fee: £499

• Exclusive mortgage deals for new and existing Premier and Premier Direct Current Account customers taking out a new mortgage.

• Keep your payments lower for the first two years of your mortgage with a rate of Bank of England Base Rate +0.14%.

• Then Bank of England Base Rate 2.14% for the remainder of the term (variable)

• Loans available between £25,000 and £999,999.

• Fully Flexible - you can overpay, and with the overpayments you build up, you can borrow money back, take payment holidays, or pay less in some months.

• *Early Repayment Charge: You are only tied into your mortgage during the first two years.

• Repay all or part of your mortgage in years one to two and pay a fee of 3% of the amount repaid.

Link to previous article: Alliance Leicester Premier Fixed Rate mortgages

Mortgage Charges and fees - What to lookout for

Here is a list of common Mortgage Charges and fees that one should take note of:

Arrangement Fees

Most lenders nowadays charge you for the work involved in setting up a mortgage or to reserve a loan at a particular rate. The amounts can vary considerably between lenders. Paying more doesnt always get you a better deal.

High Lending Charge

If you are borrowing more than 90 per cent of the property value, check to see whether you will be charged an extra fee. This is to protect the lender in case you fail to keep up the payments, but not all of them make this charge.

Insurance

Some lenders will offer you a lower mortgage rate if you buy their home insurance products. They will also encourage you to take out their mortgage payment protection policy. It is usually better to shop around for the cheapest insurance deal.

Early Redemption Penalties

With mortgage special offers, fixed rate deals, etc, you will normally be charged a penalty if you pay off your loan within the offer period. In particular, try to avoid those loans with redemption penalties that extend beyond the end of the offer period as you will be stuck on the lenders standard variable rate.

Initial Disclosure Documents And Key Facts Illustration

Initial disclosure documents (IDDs) spell out mortgage advisers services, such as whether they can recommend products from one company only, or are free to sell mortgages from all lenders. Key facts illustrations (KFIs) are given to borrowers when they apply for or are recommended a mortgage. These outline the mortgages cost over its term, repayments, fees and an interest rate expressed as an annual percentage rate (APR).

Annual Percentage Rate

The APR tells prospective customers the interest rate over the life of the mortgage. This factors in any initial offer rate and then the lenders standard variable rate to which the mortgage reverts, as well as the impact of fees. The APR in the key facts document does not reflect that many mortgage borrowers switch to better deals than the lenders standard variable rate (SVR) after their initial offer expires. Neither does it include the potential costs on leaving the mortgage, such as administration fees and early repayment charges.

Standard Variable Rate

Because house prices are at a record high many people (probably including yourself) are now thinking of their mortgages in the long term as well as the upfront rate. For this reason it is worth knowing what current customers are paying. It is highly unlikely that when you come to the end of your fixed or discount rate period you will be on the same SVR as current customers. But you can use the information to see how the lender compares against others in the market.

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