Notes: The following information is provided by a third party organisation. We have not verified this information with the lender. Ask your broker to confirm any aspects that are important to you. The main features of your mortgage will be confirmed in the Key features Illustration. Please ask your broker for a Key features Illustration
Advances
Up to £850,000 85% LTV
Up to £999,999 75% LTV
Min 75% LTV
Notes
Mortgage is Portable
Your mortgage is 'portable' which means that if you move house you can transfer your mortgage to another property, subject to terms and conditions. If you complete your new loan with Alliance and Leicester immediately, no Redemption Administration Charge (see above) will be payable by you in respect of your existing loan being repaid. If you do not complete a new loan with Alliance and Leicester immediately but move house and complete a new loan within 3 months of your existing loan being repaid, the Redemption Administration Charge will be refunded approximately 14 days after completion.
This product is available for on-line applications and any authorised paper based exceptions.
With an 'Interest Only' mortgage the choice of the repayment vehicle is the responsibility of the applicant who must maintain their payments and ensure that the performance of their chosen fund is sufficient to repay the debt at the end of the agreed term.
Alliance & Leicester may use alternative valuation methods, which include the use of limited external appraisals, or use computer based data to establish the value of the property. Remortgage customers will not receive a copy of the valuation report.
You can make overpayments on your mortgage but an Early Repayment Charge will be payable on any overpayment made during the Early Repayment Charge period. Please see below and Section 10 for full details of this.
When the Early Repayment Charge period has expired, any overpayments that you make will not be subject to an Early Repayment Charge.
Overpayments of less than £500: If you make a regular or lump sum overpayment on your mortgage (that is, an overpayment which is less than £500), the amount you owe, and so the amount of interest you pay, is not recalculated immediately, but at the end of the month in which the overpayment is made.
Overpayments of £500 or more: If you make a capital payment, the amount you owe and so the amount of interest you pay, is recalculated and reduced immediately. This provides you with a benefit immediately. However, Alliance & Leicester allow you to make one penalty-free overpayment in every January that falls within the Early Repayment Charge period on the condition that the amount is £500 or more over the monthly payment due each January. The overpayment shall not exceed 10% of the amount outstanding on your mortgage account at the time it is made, subject to being a minimum amount of £500. The overpayment will result in both the amount outstanding on your mortgage account and the amount of interest you pay being recalculated immediately. This provides you with a benefit immediately. If the overpayment exceeds 10% of the amount outstanding on your mortgage account, the full amount of the overpayment will be applied to your mortgage account. However, the amount which is over and above 10% of the amount outstanding on your mortgage account will be subject to payment of an Early Repayment Charge in accordance with the provisions contained in Section 10.
Capital Rest Period : Monthly
Repayment Types
Repayment Yes
Endowment Yes
PEP Yes
Pension Yes
Interest only (no RV) Yes
With Profits Yes
Unit Linked Yes
ISA Yes
Split Repayment Yes
Fees
Arrangement : varies
Booking :
Higher Lending
None
Valuation
Basic:
upto £50,000 - £220
upto £100,000 - £250
upto £150,000 - £280
upto £200,000 - £320
upto £250,000 - £340
upto £300,000 - £370
upto £400,000 - £430
upto £500,000 - £530
upto £750,000 - £670
upto £1,000,000 - £820
Homebuyers:
upto £100,000 - £425
upto £150,000 - £460
upto £200,000 - £510
upto £250,000 - £575
upto £300,000 - £625
upto £400,000 - £725
upto £500,000 - £825
upto £750,000 - £950
upto £1,000,000 - £1100
Valuation Fees for properties over £1,000,000:
Basic valuation - £1,070.
Homebuyers valuation - £1,570.
Fees that are available to be added to the loan must not exceed 97% LTV.
Fees are added on a Capital and Interest Basis in all scenarios. The illustration produced from the system will NOT reflect this if the repayment type is any form of interest only (i.e. pension, endowment etc. Alliance & Leicester's offer will illustrate this.
Where a product offers a free (or refunded) valuation, this incentive is specifically for the provision of an Option 1 valuation only. If the applicant requires an option 2 or 3 valuation, NO refund of the option 1 equivalent fee will be made.
The following fees can be added to the mortgage: Product Arrangement Fee and the First Telegraphic Fee. The valuation fees, further loan fees, re-inspection fees or any fees relating to regulated lending cannot be added to the mortgage.
Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.
Lender Conveyancing Fee - £189.00 Payable on completion. This fee is non refundable and cannot be added to the loan and is payable to your conveyancer on completion of the loan. The fee amount is an estimate and may not reflect the true amount for conveyancing that you will need to pay. The fee is based on a scale based on the purchase price up to £15k £120, £15k to £20k £129, £20k to £25k £136.50, £25k to £30k £141, £30k to £60k £150, £60k to £100k £189. For properties valued above £100,000 the fee is £189 + £1.88 for each £10k (or part there of) above £100k.
Redemption Administration Charge - £295.00 Payable on completion.
Insurance Admin - £25.00 Added to loan.
Telegraphic Transfer - £30.00 Payable on completion.
Acceptable Property Types
Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes
Studio Flat Yes
Flying Freehold Refer
Thatched Refer
Timber Framed Refer
Concrete Refer
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Refer
Max Discount% 100
Max Market Value% 75
New Build acceptable. Second Homes can be considered but the Lenders 'Aggregate Debt' policy applies where the applicant has two or more mortgaged properties on completion of the mortgage requested. Part of this policy is that the Maximum LTV is 85% (or 75% if the PP/Valuation is over £500,000). The mortgage payment for any outstanding mortgages (excluding self-financing buy-to lets) must be treated as a commitment when assessing affordability. For full details of this policy please refer to the Lender.
Vendor Deposits not accepted - lender regards them as a reduction in Purchase Price and expects the applicant to provide their own deposit accordingly.
Maximum number of bedrooms and bathrooms, no limit subject to valuation and property being used for applicants own main residence, no sub letting.
Maximum storeys allowed for flats with a lift, no limit subject to valuation, the exception is Ex-Local Authority owned properties where the max number of floors is 5.
Timber framed properties maybe acceptable - refer to lender for details.
Some types of concrete properties maybe acceptable - refer to lender.
The maximum loan to value for any new build or nearly new flat is 70%.
We will lend 100% of the discounted purchase price (also subject to Lenders standard LTV limits based on valuation). Additional funds may be borrowed above this purchase price but for Home Improvements only - up to a maximum of 75% of the open market valuation.
The initial interest rate applying to your chosen product is based on the Loan to Value, this being the percentage that the Loan Amount bears to our valuation or purchase price of your property, whichever is the lower. If the Loan to Value changes before completion of your mortgage, this may affect the initial interest rate on your product.
Builders' deposits are no longer acceptable therefore applicants must make a minimum 10% deposit (or higher depending on the LTV limit of the product chosen).
All builder incentives, regardless of their nature, will be netted from the purchase price of the property. The valuation of the property will be reduced by the value of all incentives.
A new build property is defined as one that was constructed, had a major renovation or change of use in the last two years.
Exposure to each new build development will be limited to 20% of the total units at each development.
Alliance & Leicester do not lend on builders schemes where the applicant does not own 100% of the property, e.g. where 25% of the sale price is funded by the builder and is payable at some later date.
Accepted Locations : England, Scotland, Wales, N Ireland
Requirements
Bank Statements No
At Least 3 Months Pay Slips Yes
P60 No
Proof Of Residency No
Life Policy To Be Assigned No
Previous Lender References No
Insurance
Buildings Conditional
Conditions On Loan
Min Loan £25,000
Max Loan £999,999
Max Portfolio of BTL Loans none
Min Age 18 years
Max Age 75 years
Min Term 5 years
Max Term 40 years
Foreign Citizens Refer
Ex-Patriates Not Accepted
Income Multipliers
Based on Income > 0
4.75 + 1 or 4.5 joint
Min months in current position none
Min months in continuous service 3
Min no. of years accounts 3
Average years taken to calculate income 3
Will consider declining profit Refer
Outgoings
Lending is based on affordability
Short Term Contract, contractors are acceptable provided they have been in employment for the last 12 months and specifically a contractor for a minimum of the last 3 months. There is no minimum length of time that should be left to run on a temporary contract.
All Fees are added on a Capital and Interest basis in all scenarios. The illustration produced from this system may NOT reflect this if the repayment type is any form of Interest Only. The Lenders Offer KFI will illustrate this policy.
Maintenance payments may be considered as a guaranteed income provided a 12-month track record of receipt of payments can be proved.
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Refer to lender
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education NOT Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular Refer to Lender
Investment Income Add 50% to income before multiply
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension Refer to Lender
Car Allowance Add 100% to income before multiply
Remortgage Max LTV Max% increase
Remortgage Not Available
Adverse Credit
CCJs : Acceptable, must be satisfied for at least 72 months
Defaults : See CCJs
Arrears : Acceptable,
must be satisfied for at least 12 months
Bankrupt : Acceptable, min months Discharged 72
Current IVA : Not Acceptable
Repossession : Acceptable, At least 72 months ago
CCJ - Accepted if satisfied over 6 years.
Defaults - Accepted if satisfied over 6 years.
Arrears - 0 in the last 12 months.
Bankruptcy - Accepted if discharged over 6 years.
IVA - Accepted if satisfied over 6 years.
Repossessions - Repossessions are not accepted if the debt is still outstanding.
- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into account his/her existing liabilities.
- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.
- The Lender follow the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including :
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.