Alliance & Leicester launches PlusMortgage

Alliance & Leicester has launched its new 100% plus loan to value (LTV) mortgage called PlusMortgage which combines a mortgage with an unsecured personal loan. Borrowers will be able to take advantage of a mortgage and loan with a maximum LTV of 125% LTV.

The main features of PlusMortgage are:

same low interest rate is applied to the mortgage and personal loan for the term of the agreement

High LTV spread - options range from 95% LTV secured plus 30% LTV unsecured to 95% LTV secured plus 5% LTV (max £25,000 for personal loan)

No Higher Lending Charge

Unlimited overpayments and no early repayment charges on the unsecured part of loan

10% overpayment facility on the mortgage

Better value – rates start at 5.64%
£250 cashback or Mortgage Transfer Service available for remortgage customers

Responsible lending – borrowers must have a minimum income of £18,000

Available for employed and self-employed borrowers

Jeremy Claridge, Head of Specialist Mortgages at Alliance & Leicester, says: “PlusMortgage offers a great option for many borrowers wanting to purchase their dream home. First time and next time buyers with little or no deposit, people requiring funds for home improvements, fees or stamp duty can get a very competitive deal with our new range.”

Jeremy Claridge continues: “PlusMortgage is highly competitive when compared against similar products in the market. Alliance & Leicester will offer the lowest “priced” 2 year combined mortgage and personal loan available up to a maximum 125% LTV, at just 5.64%. We will also be the only UK mortgage provider to offer options at 100%, 115% and 125% LTV with a facility to make unlimited personal loan overpayments which gives borrowers real flexibility as to how and when to reduce their borrowing.”

Ray Boulger, Senior Technical Manager at John Charcol comments: “More competition in the 100%+ market will be welcomed by brokers, especially as the product will initially only be available via intermediaries. Some good aspects of the PlusMortgage criteria include no unreasonable restrictions on how the unsecured loan element can be used, a valuation fee refund on most products and good indicative income multiples of around 5 times single or joint for most borrowers. In addition PlusMortgage is available for both purchase and remortgage and, although the unsecured loan must be on a repayment basis, the mortgage is available on repayment or interest only.”