Alliance and Leicester has announced a new tracker mortgage with a headline rate of less than 6 percent.
The new Alliance and Leicester mortgage is a two year base rate tracker with a 5.98 percent headline rate and a maximum loan to value of 75 percent. There is an arrangement fee of just under GBP1,000 and borrowers can take up to a maximum of GBP1 million.
The typical two year fixed rate mortgage rate has just gone over 7 percent so this sub 6 percent figure is certain to attract keen interest. It offers a real alternative for customers and shows them that the Alliance and Leicester are really doing what they can for customers.
Abbey National mortgage customers facing difficulties on the back of the credit crunch are being asked to consider taking in lodgers to make ends meet.
Across the country there are currently over 18 million households with an unused bedroom that could be offered out for rent. The average rental price paid for a bedroom in a house is just under GBP290 per month according the Abbey National figures and represents extra money that the homeowner could find very useful.
Anyone considering this option should ensure the terms of the mortgage are not being breached in any way and also that any insurance cover is still valid for the homeowners property. Abbey National expect there to be few problems but ask homeowners to check before going ahead.
One of the biggest mortgage providers in the UK, the Halifax, has announced more interest rate reductions on several of its home loan products.
The average mortgage rate reduction made by the Halifax is 0.25 percent, with most of its main tracker and fixed rate products enjoying this cut. Potential customers should be aware that they need to put down a deposit of at least 25 percent in order to receive this lower rate.
A Halifax spokesman explained that they were passing on recent reductions in the cost of borrowing that the banks charge each other, feeling it is in the interest of the market to offer the very best possible rate whenever possible.
