Alliance & Lecister Launches Plus Mortgage 1 April 2007

ALLIANCE & LEICESTER LAUNCHES PLUS MORTGAGE

Alliance & Leicester today launches its new 100% plus loan to value (LTV) mortgage called PlusMortgage which combines a mortgage with an unsecured personal loan. Borrowers will be able to take advantage of a mortgage and loan with a maximum LTV of 125% LTV.

The main features of PlusMortgage are:

The same low interest rate is applied to the mortgage and personal loan for the term of the agreement
High LTV spread - options range from 95% LTV secured plus 30% LTV unsecured to 95% LTV secured plus 5% LTV (max £25,000 for personal loan)
No Higher Lending Charge
Unlimited overpayments and no early repayment charges on the unsecured part of loan
10% overpayment facility on the mortgage
Better value – rates start at 5.64%
£250 cashback or Mortgage Transfer Service available for remortgage customers
Responsible lending – borrowers must have a minimum income of £18,000
Available for employed and self-employed borrowers
Highly competitive procuration fee

Jeremy Claridge, Head of Specialist Mortgages at Alliance & Leicester, says: “PlusMortgage offers a great option for many borrowers wanting to purchase their dream home. First time and next time buyers with little or no deposit, people requiring funds for home improvements, fees or stamp duty can get a very competitive deal with our new range.”

Jeremy Claridge continues: “PlusMortgage is highly competitive when compared against similar products in the market. Alliance & Leicester will offer the lowest “priced” 2 year combined mortgage and personal loan available up to a maximum 125% LTV, at just 5.64%. We will also be the only UK mortgage provider to offer options at 100%, 115% and 125% LTV with a facility to make unlimited personal loan overpayments which gives borrowers real flexibility as to how and when to reduce their borrowing.”

Ray Boulger, Senior Technical Manager at John Charcol comments: “More competition in the 100%+ market will be welcomed by brokers, especially as the product will initially only be available via intermediaries. Some good aspects of the PlusMortgage criteria include no unreasonable restrictions on how the unsecured loan element can be used, a valuation fee refund on most products and good indicative income multiples of around 5 times single or joint for most borrowers. In addition PlusMortgage is available for both purchase and remortgage and, although the unsecured loan must be on a repayment basis, the mortgage is available on repayment or interest only.”

PlusMortgage

2 Year Fixed Rates

5.64% fixed until 30/04/09 max 125% LTV (min advance £100,000, max advance £250,000), £1,999 Arrangement fee
5.84% fixed until 30/04/09 max 100% LTV, £999 Arrangement fee, free valuation¹
5.94% fixed until 30/04/09 max 115% LTV, £999 Arrangement fee, free valuation
6.48% fixed until 30/04/09 max 125% LTV, £999 Arrangement fee, free valuation
6.74% FeeSaver fixed until 30/04/09 max 125% LTV, No arrangement fee, free valuation, Mortgage Transfer Service²

3 Year Fixed Rates

6.08% fixed until 30/04/10 max 115% LTV, £999 Arrangement fee, free valuation
6.48% fixed until 30/04/10 max 125% LTV, £999 Arrangement fee, free valuation
6.78% FeeSaver fixed until 30/04/10 max 125% LTV, No Arrangement fee, free valuation, Mortgage Transfer Service

5 Year Fixed Rates

6.08% fixed until 30/04/12 max 115% LTV, £999 Arrangement fee, free valuation
6.48% fixed until 30/04/12 max 125% LTV, £999 Arrangement fee, free valuation
6.68% FeeSaver Fixed to 30/04/12 max 125% LTV, No Arrangement fee, free valuation, Mortgage Transfer Service

Notes to Editor:

¹ Valuation refunded upon completion

²Mortgage Transfer Service – offers convenience for customers, speeds up the remortgage process and helps to remove or lower the associated legal costs

For further information mortgage brokers should visit www.al.intermediary.co.uk

or call Alliance & Leicester’s dedicated specialist lending helpline – 0845 300 2563.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

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