Alliance & Leicester mortgages

Home mortgage

At Alliance & Leicester we have a range of home mortgages. You may want lower payments during the early years, the certainty of a fixed rate, or a greater level of flexibility. There are home mortgages designed to suit your particular circumstances:

First time buyers - if you are applying for a home mortgage for the first time, or have not been a homeowner at any time during the last two years
Next time buyers - if you have been a homeowner for all or some of the last two years and are moving house, our mortgages may suit your needs
Existing Alliance & Leicester home mortgage customers - if you are moving home and have had a mortgage with us in the last three months and been an Alliance & Leicester borrower for at least twelve months
Remortgage customers - if your home mortgage is with another lender and you want to transfer the mortgage to Alliance & Leicester

What are the repayment terms?

As well as a range of home mortgage types to suit your needs, you can also choose how you want to repay your mortgage.

Repayment home mortgage

This means that your monthly home mortgage payment helps to pay off both the interest and your loan amount at the same time. This type of repayment method is also known as a Capital and Interest mortgage. One of the things people like most about this type of mortgage is that you can be sure your mortgage will be totally paid off at the end of the term as long as you keep up the repayments.

Interest-only home mortgage

Your monthly home mortgage payments pay only the interest element of the mortgage loan. You’ll also need to either invest in a pension, an endowment plan, an ISA or other long-term investment plan, or put in place another suitable investment vehicle, to pay off the capital. When you reach the end of the term of your home mortgage, you cash in the plan and use it, or the proceeds of your investment vehicle, to pay off your loan. Like all investments, the payout on any plan isn’t guaranteed. So you’ll need to keep an eye on your investments to make sure you’ll have enough money to pay off your home mortgage at the end of the term as, if you do not, you will be liable for any shortfall.