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Alliance & Leicester makes tracks

ALLIANCE & LEICESTER

10 Year Base Rate Tracker &#45 Standard Package

Type:
Tracker mortgage

Tracker term:
10 years

Tracker rate:
0.99% above Bank of England base rate

Payable rate:
5.24%

Minimum loan:
£25,000

Maximum loan:
Up to 95% of valuation subject to a maximum of £250,000,
up to 90% of valuation subject to a maximum of £500,000,
up to 85% of valuation subject to a maximum of £1m

Income multiples:
Up to 95% of valuation &#45 three times principal income plus second or 2.75 times joint,
up to 90% – up to 3.5 times principal income plus second or three times joint,
up to 75% of valuation &#45 up to four times principal income plus second or 3.25 times joint

Flexible features:
Overpayments, underpayments, payment holidays, interest,
lump sum withdrawals, interest calculated daily

Arrangement fee:
£395

Redemption fee:
None

Introducer&#39s fee:
Subject to negotiation

Tel: 0870 0100657

Alliance & Leicester&#39s 10 year base rate tracker mortgage &#45 standard package is set at 0.99 per cent above the Bank of England base rate for 10 years and is fully flexible.

The MarketPlace at Bradford & Bingley mortgage development officer Elliot Nathan thinks this mortgage will compete with various 10-year fixed-rate mortgages. He says: “This tracker rate is competitive compared with 10-year fixed rates deals. Having no redemption penalties enables the borrower to come out of the rate should interest rates keep rising.”

Nathan thinks the flexible features are useful to have on a mortgage. However, he feels the rate could be improved. He says: “The interest on this product could be 0.15 per cent to 0.25 per cent lower to give more of a gap between it and the market leading 10 year fixed rates.”
BROKER RATINGS:

Suitability to market: Good
Competitiveness of mortgage rate: Average
Flexibility: Good
Adviser remuneration: Average

Overall 8/10

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