Can I have my Alliance and Leicester interest rate for my mortgage reduced?

Author	Message
Written on: 02.11.2009 [12:01]
Liza Liza Topic creator Posts: 4	My Alliance and Leicester interest rate for my mortgage has just come to an end with 2 year fixed rate of 5.6% dropping to 4.9% but I was surprised as I thought that due to the base rate being so low at the moment I thought I would get a lower standard variable. I am hoping to get a new deal instead, but there are a few problems, I borrowed 95% of the house value for my mortgage 2 years ago, so haven’t really paid much back yet. Now it seems that no one seems to be offering such high loan to ratio values, I can’t find any over 60% whereas I think I still need about 85%. I have a good credit rating and a stable, quite good income so the question now is should I stay with my A&L rate or try an offset mortgage? My brother told me that offset mortgages are good as you can save at the same time but after recently buying the house I don’t really have much to save.
Written on: 06.11.2009 [15:54]
Niclaas Niclaas Posts: 2	I would think it wise to stay with your current lender as if you took out the mortgage just 2 years ago you may be in negative equity by now and this makes it difficult when moving to another lender. Given that the bank base rate is unlikely to rise this year 5% is still a good rate. An offset is not for everyone, make sure you add up the costs or ask for a second opinion before going for one. You say you have a good credit rating and steady income, well in that case (assuming that all your repayments were made on time over the past 2 years) ask A&L perhaps they will be happy to offer you another deal as you are a good borrower, no harm in asking.
Also very interesting: Putting the mortgage early repayment calculator into practice! How can I research the very best mortgages online? Can I have my Alliance and Leicester interest rate for my mortgage reduced? Is poor credit a problem looking for mortgages online / quote for a mortgage? Security issues applying for mortgages on line? How much am I risking with a guarantor mortgage agreement? Are self cert remortgages the right option for the self-employed? Can I still get a 100% mortgage? How do I remortgage online? What are the new 100% mortgages deals for first time buyers?
Written on: 17.11.2009 [11:48]
Saryu Saryu Posts: 1	I agree, definitely try and speak to Alliance and Leicester, you would be surprised how much they want to keep their customers. They won’t be able to work miracles but they may offer you a lower rate if you have been a good customer.