Barclays Woolwich: Buy to Let Mortgage

Fancy yourself as a landlord? With our range of BTL deals, owning your own investment property has never been easier. And we’re sure you’ll find a mortgage that’s right up your street.

The basics:

• Mortgages you don’t need a degree to understand.

• Choose to borrow in your private name (whether you are a UK Resident, Non Uk-Resident or Expatriate), as a combination of private individuals (up to 4 applicants allowed), as a Special Purpose Vehicle (SPV) Limited Company or a Limited Liability Partnership (LLP). A SPV Limited Company may be an attractive option if you’re looking for an alternative investment vehicle.

• Borrow up to 85% loan to value (based on purchase price or valuation whichever is lower) on selected products.

• Mortgages can be for 5 to 25 years.

• Choose repayments on an interest-only and/or capital repayment basis.

• We'll consider loan of £35,000 up to £2.5 million on an individual property.

• Borrow on an unlimited number of properties within our BTL cap of £5m million (subject to formal approval).

• You can choose from a range of BTL Mortgage products including Fixed, Tracker and Switch and Save® Remortgage options. See our latest deals.

• Overpayments up to 10% can be made without incurring an early repayment charge (terms and conditions apply to certain products).

• We don’t have a maximum age restriction, but you will need to be at least 21.

• All mortgages are portable so you can move your BTL mortgage to another BTL property.

Rental cover:

Your property will need to generate sufficient annual rental income to cover your annual interest mortgage payment. The rent cover we will require is 120% calculated on the initial pay rate of the product you select.

General advice:

Owning an investment property is very different to owning your own home; you’re effectively running a small business and therefore need to research, plan and manage carefully to ensure the best possible chance of success.

Remember:

• BTL should be viewed as a long-term investment opportunity - the value of property can go down as well as up.

• Ensure you thoroughly research a prospective property and seek advice from local letting agents about its suitability for letting, level of current demand and anticipated rental income. Consider potential for other letting methods.

• Consider all the costs which may be involved (such as solicitors' fees, stamp duty, letting agency and management fees, building insurance, ground rent/service charge for leasehold flats, maintenance/repairs to the property) into your calculations.

• Consider the implications on your tax affairs. We recommend you consider taking professional tax advice from an accountant or discussing with your tax office.

• Make provisions for how you would make your monthly BTL mortgage repayments in the event of your BTL property being empty, your tenants failing to pay or if interest rates rise.

• You’ll need to arrange insurance that’s specifically for landlords. Find out more about Buy to Let insurance from Barclays.

Ready to apply? Call 0845 075 7070* or speak to a mortgage adviser in your local Barclays branch. Please read our tariff of charges. This information must be read in conjunction with our legal information. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. * Lines are open Monday to Friday 9am-8pm and Saturday 9am-2pm. To maintain a quality service, we may monitor or record phone calls. Read call charges info.

Link to previous articles: Case Study Example: Barclays Woolwich Offset Mortgage Barclays Woolwich Offset Mortgage Barclays Woolwich Remortgaging Barclays Woolwich: Fixed Rate buyer mortgages Barclays Woolwich: First-time buyer mortgages Barclays Woolwich Mortgages: Buying your first home

Case Study Example: Barclays Woolwich Offset Mortgage

Case study: Sarah and Simon's story

"We've cut years and thousands of pounds off our mortgage.

"We had an £87,000 repayment mortgage and £7,000 savings. We wanted to be able to get at our savings if we needed to, but use them to our advantage in the meantime.

"So we took an Offset Mortgage. This means we offset our savings against what we owe. So we only pay interest on the difference between the two amounts: £80,000. This is saving us a total of £15,736.75** in interest on our original mortgage term, meaning we could pay it off three years and nine months early.

"The great thing is that our current, savings and mortgage accounts are still kept completely separate and we can have instant access to our savings if we need them." YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. This case history is fictitious but illustrates how this could work for you. Please read the tariff of charges. This information must be read in conjunction with our legal information. * Lines are open Monday to Friday 9am-8pm and Saturday 9am-2pm. Calls may be monitored and/or recorded for security and training purposes. Read call charges info. ** This is only true if your savings are not touched and the interest rate remains the same throughout the term.

Link to previous articles: Barclays Woolwich Offset Mortgage Barclays Woolwich Remortgaging Barclays Woolwich: Fixed Rate buyer mortgages Barclays Woolwich: First-time buyer mortgages Barclays Woolwich Mortgages: Buying your first home Alliance Leicester :Guide to remortgaging

As available on Barclays Woolwich website

Barclays Woolwich Offset Mortgage

Looking for a bigger place or just a better mortgage deal? With our Offset Tracker you could reduce the life of your mortgage term by up to 8 years 8 months or save up to £47,772** in interest.
You benefit from a low tracker rate and get to offset your savings and current account against the total amount you owe. Take a look at our latest deal below.

Offset Tracker mortgage

• Barclays Bank Base Rate + 0.48%, currently 5.98%, for the term of the mortgage. The overall cost for comparison is 6.2% APR.

• Application fee: £595

• No early repayment charge

With Offset Tracker mortgage mortgage you can:

• Borrow up to 80% of the value of your home.

• Repay any amount without incurring an Early Repayment Charge.

• Choose to set up a Mortgage Reserve, which allows further borrowing at mortgage rates (a Mortgage Reserve is a secured overdraft that enables you to borrow against the equity in your home).

• Make overpayments.

• Make underpayments or take a payment holidays (subject to a Mortgage Reserve). Interest will be charged during the payment holiday period.

** Calculation based on the above product; repayment mortgage of £100,000 over a 25-year term that has been offset with £20,000 savings, resulting in a reduction in mortgage term of 8 years 8 months or a saving of £47,772 in overall interest. Calculation assumes balance remains constant throughout the life of the mortgage and that the mortgage loan and savings balance will vary. Outcomes will be either a reduction in payments or a reduction in mortgage term. No interest is paid on balances offset against the mortgage. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Please read the tariff of charges. This information must be read in conjunction with our legal information. * Lines are open Monday to Friday 9am-8pm and Saturday 9am-2pm. Calls may be monitored and/or recorded for security and training purposes.

Link to previous articles: Barclays Woolwich Remortgaging Barclays Woolwich: Fixed Rate buyer mortgages Barclays Woolwich: First-time buyer mortgages Barclays Woolwich Mortgages: Buying your first home Alliance Leicester :Guide to remortgaging Alliance Leicester guide to moving home

Barclays Woolwich Remortgaging

You've had your mortgage for a while, it's no longer competitive or your current mortgage deal is coming to an end. Does this sound like you?
If so take a look at our range of Woolwich Switch & Save® mortgages below. You could make big savings with a far better deal.

10-year fixed Remortgage Plan

5.89% until 30 April 2018, then for the remaining term Barclays Bank Base Rate + 0.95%, currently 6.45% The overall cost for comparison is 6.3% APR†. More Details on Barclays Woolwich 10-year fixed Remortgage Plan….

Lifetime Tracker Remortgage Plan

Barclays Bank Base Rate + 0.47%, currently 5.97%, for the term of the mortgage. The overall cost for comparison is 6.1% APR†.More Details on Barclays Woolwich Liftime Tracker Remortgage Plan….

Mortgage Reserve

Take advantage of a Mortgage reserve - a convenient way of freeing up some cash by enabling you to borrow money at mortgage rates of interest. More Details on Barclays Woolwich Mortgage Reserve….



† Important information

Lifetime Tracker: Offers a non-disclosed valuation and either no fees for in-house legal services or £200 cashback. No application fee. No early repayment charge. Borrow up to 80% of the value of your home.

10-year fixed rate: Offers a non-disclosed valuation and either no fees for in-house legal services or £200 cashback. Application fee: £995. Early repayment charge: 6% of the balance repaid if the mortgage is repaid in whole, part or transferred to another scheme before 30 April 2018. Borrow up to 80% of the value of your home. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Please read our tariff of charges. This information must be read in conjunction with our legal information. * Lines are open Monday to Friday 9am-8pm and Saturday 9am-2pm. Calls may be monitored and/or recorded for security and training purposes.

Link to previous articles: Barclays Woolwich: Fixed Rate buyer mortgages Barclays Woolwich: First-time buyer mortgages Barclays Woolwich Mortgages: Buying your first home Alliance Leicester :Guide to remortgaging Alliance Leicester guide to moving home Alliance Leicester Guide: Buying your first home

Barclays Woolwich: Fixed Rate buyer mortgages

A fixed rate mortgage could be the perfect deal if you're unsure which way interest rates are going.

They also help if you're planning ahead or working to a budget. Fixed rate mortgages mean you know exactly what your monthly repayments will be - perfect for the control freak in you.

What the fixed rate mortgages offer:

• Fully flexible mortgages you don't need a degree to understand.

• The option of a Mortgage Reserve, allowing additional borrowing at standard variable rate.

• Subject to the availability of a Mortgage Reserve, you could apply for a payment holiday or make overpayments or underpayments.

• Choose from a range of fixed rates, subject to availability.

• The comfort of knowing how much you'll pay.

• After the fixed rate period your mortgage will switch to a competitive rate linked to the Barclays Bank Base Rate.

1-year Fix and Track

5.49% until 30 April 2009, then for the remaining term Barclays Bank Base Rate + 0.39%, currently 5.89%. The overall cost for comparison is 6.1% APR. Application fee: £995. Borrow up to 80% of the value of your home.

2-year fixed rate

6.09% until 30 April 2010, then for the remaining term Barclays Bank Base Rate + 0.95%, currently 6.45%. The overall cost for comparison is 6.7% APR. Application fee: £995. Borrow up to 80% of the value of your home.

5-year fixed rate

5.95% until 30 April 2013, then for the remaining term Barclays Bank Base Rate + 0.95%, currently 6.45%. The overall cost for comparison is
6.5% APR. Application fee: £995. Borrow up to 80% of the value of your home.

10-year fixed rate

5.89% until 30 April 2018 then for the remaining term Barclays Bank Base Rate + 0.95%, currently 6.45%. The overall cost for comparison is 6.3% APR. Application fee: £995. Borrow up to 80% of the value of your home.

Early Repayment Charges:

1-year Fix and Track: 1% of the balance repaid will apply if the mortgage is repaid in whole, part or transferred to another scheme until 30 April 2011. This mortgage may be switched to any Woolwich fixed, or capped rate between 1 May 2009 and 30 April 2011 subject to availability at the time, without incurring an early repayment charge on the mortgage you are leaving.

2-year fixed rate: 3% of the balance repaid will apply if the mortgage is repaid in whole, part or transferred to another scheme until 30 April 2010. However, you can overpay up to 10% per year during the fixed rate period without incurring an early repayment charge.


5-year fixed rate: 3% of the balance repaid will apply if the mortgage is repaid in whole, part or transferred to another scheme until 30 April 2013. However, you can overpay up to 10% per year during the fixed rate period without incurring an early repayment charge.

10-year fixed rate: Early repayment charge: 6% of the balance repaid will apply if the mortgage is repaid in whole, part of transferred to another scheme until 30 April 2018. However, you can overpay up to 5% per year during the fixed rate period without incurring an early repayment charge. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Please read our tariff of charges. This information must be read in conjunction with our legal information. • Lines are open Monday to Friday 9am-8pm and Saturday 9am-2pm. Calls may be monitored and/or recorded for security and training purposes. Call charges Apply.

Link to previous articles: Barclays Woolwich: First-time buyer mortgages Barclays Woolwich Mortgages: Buying your first home Alliance Leicester :Guide to remortgaging Alliance Leicester guide to moving home Alliance Leicester Guide: Buying your first home Guide to Alliance & Leicester Mortgages

Barclays Woolwich: First-time buyer mortgages

Buying your first home can be daunting - not least taking your pick of the mortgages on offer. See our fixed rates for easier budgeting at the start of your mortgage.
At Woolwich, we offer all of our products to first time buyers, giving you maximum choice.
Barclays Woolwich current deals include:

2-year fixed rate

6.99% until 30 April 2010, thereafter reverting to the Barclays Bank Base Rate (which is variable) currently 5.50% + 0.95% = 6.45%. The overall cost for comparison is 6.8% APR.

• Borrow up to 95% of the value of your home.

• No application fee.

• Early repayment charge: 3% of the balance repaid until 30 April 2010.

Read our first-time buyer guide for help with everything from choosing the right street to securing your new home.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Please read our tariff of charges. This information must be read in conjunction with our legal information. * Lines are open Monday to Friday 9am-8pm and Saturday 9am-2pm. Calls may be monitored and/or recorded for security and training purposes. Read call charges info.

Link to previous articles: Barclays Woolwich Mortgages: Buying your first home Alliance Leicester :Guide to remortgaging Alliance Leicester guide to moving home Alliance Leicester Guide: Buying your first home Guide to Alliance & Leicester Mortgages Alliance & Leicester Mortgage Loans FAQ-1

Barclays Woolwich Mortgages: Buying your first home

Barclays Woolwich Mortgages: Buying your first home

Buying Your First Home:

Barclays is there to help you. Buying your first home can give you a lot to think about. Why not spread the load and take advantage of our experience when it comes to mortgages?

What Woolwich mortgages give you:

• Fully flexible mortgages you don't need a degree to understand.

• Plenty of choice.

• Fixed or variable rates.

• No higher lending charge (a fee sometimes charged by a lender when the amount you want to borrow is more than a given percentage of the value of the property).



Barclays Woolwich offers 2 kinds of Mortgages for first home buyers:

1. First-time buyer mortgages Great fixed rate deals to guide you gently on to the property ladder. Details of 2. Fixed-Rate Mortgages Designed so that you always know how much you'll pay each month. Details of YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Please read the tariff of charges for Barclays. This information must be read in conjunction with their legal information. * Lines are open Monday to Friday 9am-8pm and Saturday 9am-2pm. Calls may be monitored and/or recorded for security and training purposes. call charges will apply.

Link to previous articles: Alliance Leicester :Guide to remortgaging 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 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

Guide to Alliance & Leicester Mortgages

Whether you are a first time buyer or already have a mortgage, the sheer number of mortgages available could leave you a little confused.
At Alliance & Leicester we understand that everyone’s circumstances are different. You may want lower repayments in the early years, or the certainty of a fixed rate. You might want a greater level of flexibility, or you may not have any idea at all! That’s why we’ve produced this handy guide to help you understand the different types of mortgages available.

1. Paying your mortgage back

Despite all the different types of mortgage schemes and deals available, there are still just two basic ways of repaying your mortgage available:
• Repayment mortgage (capital and interest)
• Interest only mortgage

Repayment mortgage
This type of repayment method is also known as a Capital & Interest mortgage - your monthly repayments pay off the interest and some of the capital borrowed each month. This is the only method that ensures your mortgage is totally paid off by the end of the term – as long as you keep up your payments.

Interest Only mortgages

This is where you only repay the interest on your mortgage each month, so you’ll need some sort of investment plan to pay off the capital, e.g. a pension, an endowment policy, an ISA or other long term investment plan. When your investment matures, you cash in the plan and use it to pay off your mortgage loan. You are responsible for the repayment of the capital when the mortgage reaches the end of the term, and you may want to seek professional advice on the investment.
You can also combine these two methods, called Part & Part, so part of your mortgage would be interest only, and the remaining part would be repayment.

2. Types of mortgage products

Discount mortgages

The rate of interest you pay is set at an amount below the lender’s standard variable rate (SVR), and the rate you pay moves up or down in line with any changes to the SVR. This type of loan is cheaper than Standard Variable Rate at the start of your mortgage and allows you to take advantage of any interest rate cuts. But if interest rates rise, your monthly payments go up.
Most people find that buying a home – and especially their first – leaves them financially stretched. With the extra expense of decorating and furnishing, anything that keeps costs down in the first years can be a big help. That’s exactly what a discount mortgage does.
The discount you enjoy in the first few years of your mortgage can mean a big saving, and the discount usually means you are tied into your mortgage during the discount period. So, if you change your plans and need to repay your mortgage during the discount period, you will have to pay an Early Repayment Charge. However if you simply want to move house, you can usually take your mortgage with you.

Fixed Rate mortgages

The rate of interest on your mortgage is fixed for a set period of time regardless of whether the Bank of England Base Rate or the lender’s Standard Variable Rate changes.
Most mortgages have rates that change over time - and repayments that go up as well as down. This can make budgeting difficult, but a fixed rate mortgage can help. Fixed rate mortgages are suitable for those who prefer to know exactly what their monthly outgoings will be.
There may be minor variations in your monthly payments to cover insurance, but your mortgage interest rate will stay fixed no matter what happens to mortgage rates elsewhere. An Early Repayment Charge may apply if the mortgage is repaid during the fixed period.
Remember, if interest rates fall, you may miss out on a reduction in your monthly payments.

Cashback mortgages

You receive a lump sum or percentage of your loan in cash when you complete your mortgage.

Tracker mortgages

Your mortgage interest rate is linked to the Bank of England’s base rate for a set period. So if the base rate goes up so will the rate of interest you will have to pay on your mortgage, but if the base rate falls so will your monthly repayments.

Flexible mortgages

This type of mortgage is designed to accommodate your changing financial needs. It may allow you to overpay, underpay or even take payment holidays. You may also be able to make penalty free lump sum repayments.

3. Protect your investment

Don’t forget insurance to 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 a mortgage specialist for a quote. 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 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 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 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 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