In the future customers taking out an Alliance and Leicester mortgage will find a range of interest rates on offer depending on the amount of money they are putting down as a deposit.
Last week the Alliance and Leicester introduced their new stance on mortgages, with a maximum of 90 percent loan to value available. However they also introduced a lower rate when the customer can put down a 25 percent deposit, basically making it a more attractive proposition for the borrower and at the same time reducing their own risk exposure.
It has been argued that the 100 percent mortgages did a lot to create the housing market price increases, since people could simply borrow whatever was needed, without having to put down any of their own money. Those days are gone it seems, so the Alliance and Leicester stance may well be repeated by other lenders over the coming weeks.