Your guide to Alliance & Leicester mortgages

The rate of interest you pay is set below our standard variable rate (SVR) and moves up or down in line with any changes to the SVR. Most people find that buying a home – and especially their first – leaves them financially stretched, anything that keeps costs down in the first years can be a big help. That’s exactly what a discount mortgage does for you.

Currently, there are no discount mortgages available.

The rate of interest on your mortgage is fixed for a set period of time, regardless of whether the Bank of England base rate or our standard variable rate changes. Fixed rate mortgages are suitable if you prefer to know exactly what your monthly outgoings will be.

Your mortgage interest rate is linked to the Bank of England base rate for a set period. If the base rate goes up so will the rate of interest you will have to pay on your mortgage, but if the base rate falls so will your monthly repayments.

This mortgage feature is designed to accommodate your changing financial needs. Some of our mortgages may allow you to overpay, underpay or even take payment holidays. You may also be able to make penalty-free lump sum repayments.

Despite all the different types of mortgage schemes and deals available, there are only 3 basic ways of paying back your mortgage:

Repayment
Your monthly repayments pay off the interest and some of the capital borrowed each month. This is the only method that ensures your mortgage is totally paid off by the end of the term – as long as you keep up your payments.

Interest only
This is where you only repay the interest on your mortgage each month, so you’ll need some sort of investment plan to pay off the capital, e.g. a pension, an endowment policy, an ISA or other long term investment plan.

Part & part
This is where a proportion of your mortgage is paid on a repayment basis while the remainder is paid on an interest only basis. As with an interest only mortgage, you’ll need some sort of investment plan, e.g. a pension, an endowment policy, an ISA or other long term investment plan to pay off the capital in the interest only portion.

While you browse our mortgage range you may be offered a helpful live chat with one of our mortgage specialists.
Or if you have any questions you can request a live chat wherever you see the click to chat button.