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 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 5 Year Discount Max LTV 90% Mortgage Plan

Mortgage Plan : Alliance Leicester 5 Year Discount Max LTV 90% Mortgage Plan

Initial Interest Rate: 6.19% for five years

Rate for remaining term (Variable): 7.89%

Overall cost of comparison (APR): 7.4%

Early repayment charges Apply?: No

Product Fee: £149

Typical features: Discount Mortgage from Alliance Leicester with No Pre-payment charges Lower repayments for the first five years with a discount of 1.70% off our Standard Variable Rate. 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.

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

Mortgage Plan : Alliance Leicester 3 Year Fixed FeeSaver

Initial Interest Rate: 6.24% 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: £0

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

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 2010 and pay a fee of 3% of the amount repaid.

Link to previous articles:
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 Premier Tracker 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 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 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 features - various kinds of mortgage features-2

This article is in continuation to the previous article Mortgage features - various kinds of mortgage features. Please read the first part before continuing with this one.

Offset mortgage

With an offset mortgage, your main current account or savings account (or both) are linked to your mortgage and are usually, but not always, held with the mortgage lender. Each month, the amount you owe on your mortgage is reduced by the amount in these accounts before working out the interest due on the loan.
So as your current account and savings balances go up, you pay less on your mortgage. As they go down, you pay more.

Current account mortgage

A current account mortgage is similar to an offset mortgage in that it offsets the balance of your savings against your mortgage. However, in this case, rather than your mortgage and current account being separate pots of money, they are usually combined into one account. This means that the account acts like one big overdraft.

Look at Section 4 of the keyfacts document about this mortgage document to see whether it is a current account or offset mortgage and whether you have to take a current account offered by the lender as a condition of the mortgage.

Is an offset or current account mortgage right for you?

-Possibly, yes, - if you are a higher rate taxpayer, have substantial savings to offset and like the idea of built-in flexibility to make overpayments and underpayments.

-Possibly not, if after paying your deposit you don't have much left in savings and if other mortgages have a lower interest rate or other features that are more important to you.


Top tips
-Read the keyfacts document and use it to compare costs and features of other mortgages available.
-Look for the APR figure alongside the interest rate.
-Use our Mortgage tables to help you compare costs and features of mortgages available
-Don't forget that discounts and special deals are temporary, and rates can go up when they end.

Link to previous article on Mortgage features - various kinds of mortgage features .

Mortgage features - various kinds of mortgage features

Mortgages offered in the UK markets can have different features. For example, here is a list of typical features that you'll find:

--cashback mortgages
--flexible mortgages
--offset mortgages
--current account mortgages

Look at Sections 4 and 12 of the keyfacts document about this mortgage which will explain the features of the mortgage.

Cashback mortgage

This may be offered with some kind of interest-rate deal. The mortgage lender pays you a substantial sum (for example 3-5% of the amount you borrow) shortly after you take up the mortgage loan. If you move to another lender in the early years you'll have to repay some or all of the cashback received.

Is it right for you?

May be yes, if you need a large cash sum - for example, to buy house furnishing like furniture, or you expect the sum to more than compensate for any interest-rate rises during the penalty period.
Possibly not, if you can manage without the cashback now and can get a better overall deal elsewhere.
So ultimately it’s your call, you have to decide and predict whether you may get a better deal later and whether you would like to switch later.


Flexible mortgage

A flexible mortgage gives you some scope to change your monthly payments to suit your ability to pay. It's also useful if you want to pay off your loan more quickly. Several flexible features are becoming common and they aren't limited to mortgages with 'flexible' in their name. Here are some flexible features:
--Overpayments - you can pay more than your normal monthly mortgage payment or pay off a lump sum, or both.
--Underpayments and payment holidays - you pay less than the normal monthly payment for a limited period (say six or twelve months). You may even be able to stop making payments altogether. This could be useful if, say, you lose your job or take time off to care for a child.
--Borrow extra (loan drawdown) - you can borrow extra without further approval from your lender, provided the total loan does not go above an overall limit. Alternatively you may be able to 'borrow back' against earlier overpayments.

Is a flexible mortgage right for you?
Possibly, yes, if you are likely to use these features, for example if you're self-employed and have a variable income.
Possibly not, if you are unlikely to use these features. A less flexible mortgage may be cheaper or more suitable for you.


Let’s discuss the Offset and Current Account Mortgage in the following article.

Link to Previous article on Types of Interest rate deals on Mortgages.