Alliance & Leicester mortgages push flexibility
Alliance & Leicester uses its long
experience as a building society to put forward a
range of mortgages based on flexibility.
"We’re focused on giving customers as much flexibility
and choice as possible, so we offer flexible features
on a range of our traditional discount, fixed and base
rate tracker mortgages so they can enjoy the best of
both worlds," says
Alliance & Leicester.
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Alliance & Leicester Mortgages are
flexible
A recent research document released by
Alliance and Leicester found, among other things that:
"Many borrowers are not aware of the options of a flexible
mortgage
product
when
shopping
around
for their home loan. According to the latest findings
from Alliance & Leicester’s moving/improving index,
almost one in two (49 per cent) Britons are not aware
of the benefits of a flexible mortgage.
A flexible mortgage is ideal for those customers
who wish to take advantage of a range of benefits
including overpayments, underpayments and taking payment
holidays.
Only one in four (25 per cent) people are aware that
a flexible mortgage can allow borrowers to make overpayments,
and even fewer (15 per cent) know that a flexible
mortgage allows for underpayment or for payment holidays.
Paul Cooper, Head of Mortgages at Alliance & Leicester,
said: “Finding the right mortgage can sometimes be
a daunting experience with so many different types
to choose from. If people aren’t sure what sort of
mortgage would be best for them, we advise that they
speak to a qualified mortgage advisor to get expert
advice.
“Flexible home loans can be a useful way for homeowners
to make their mortgage work for them. They offer people
the chance to adapt their mortgage to suit their needs,
for instance by overpaying when spare capital is available,
or underpaying or taking a payment holiday in leaner
times.”
Alliance & Leicester’s quarterly
moving/improving index asked a UK representative sample
of 2,000 people
what, if anything, they think (from a number of different
options) are some of the features and benefits of
a flexible mortgage.
Men are more knowledgeable when it comes to flexible
mortgages, with 45 per cent knowing one or more
of their features compared to only 33 per cent of
women.
Those in their 30s and 40s are the most likely to
be familiar with flexible mortgages, with 54 per cent
of both age groups identifying one or more features.
Around the regions:
People in the North have the greatest knowledge of
flexible home loans, with 48 per cent being able
to identify one or more benefits, including 38 per
cent who are aware that they allow borrowers to
make overpayments and reduce their borrowing term
or the size of their monthly repayments
The Welsh are the least likely to be familiar with
flexible mortgages, with fewer than one in three (31
per cent) being able to identify one or more features.
Only 32 per cent of those in London or Scotland can
identify any features. In addition, 19 per cent of
those living in the capital think there are no benefits
at all to a flexible home loan.
Example of the savings that can be made on a flexible
mortgage:
For a home loan of £85,000 on a rate of 3.64
per cent (the current A&L two-year flexible discount
mortgage), over a term of 25 years, the monthly payment
would be £431.94, the term end date would be
November 2028 and the estimated interest charged would
be £44,581.
If the payment were increased by £100
per month to £531.94, the term end date would
