No 40 Percent Deposit: No Alliance & Leicester Tracker Mortgage on 100 Mortgages

Alliance & Leicester joined Abbey and Lloyds TSB and announced new tracker mortgage deals yesterday, the move came after the 1.5 percent interest rate cut from the Bank of England last week. Most Lenders withdrew their existing tracker mortgage products in light of the cut, but the new tracker deals are few and far between and unless you have at least 25 percent deposit (75 percent LTV) you will be hard pushed to find one.

With the two tracker mortgage deals Alliance & Leicester are offering you would need a staggering 40 percent deposit to qualify, the starting rate is 1.89 percent over base or 4.89 percent and you would have to pay 1 percent of the loan value as an arrangement fee. However A&L have said they feel their products are competitive.

Lenders are still increasingly reluctant to provide affordable deals, unless you have a huge deposit, which sadly many people don’t have you will have to hold fire and see what happens, the Government has continued to stress the urgency to banks to help home owners, although it seems at present nothing is being done.

Source: Telegraph

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