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A&L reduces SVR for new customers

Alliance & Leicester is lowering its SVR from 4.99% to 4.24% for new customers, bringing it in line with Santander’s SVR.

All new A&L mortgage products will now revert after their initial rate to a Bank of England base rate tracker at +3.74%, currently 4.24%.

The move follows court approval for the legal transfer of Alliance & Leicester to Santander UK on 28 May.

All product codes on its current range excluding Lifetime Tracker products will change from close of business Monday 31 May 2010 and will be replaced.

A spokesman for Alliance & Leicester Mortgages, says: “With immediate effect we have decided to revert all new A&L mortgage contracts to Bank of England base rate plus 3.74%, which is equivalent to the current Santander SVR.

“There are no changes to the SVR for any current Alliance & Leicester mortgage customers, nor are we changing the Santander SVR for new or existing customers.”  

Yesterday Lloyds Banking Group introduced a new Homeowner Variable Rate of 3.99% for new Lloyds TSB and Cheltenham & Gloucester customers.

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  • Bill 11th November 2011 at 1:11 am

    I am having the same issues with my A&L SVR of 4.99. just been offered a 3years fixed rate with Santander @ 4.99, same as my existing A%L. is it worth moving or staying?

  • Chris Fowler 5th October 2011 at 6:38 pm

    I intend to agree that A&L should reward loyalty of their existing customers, and now that they are a single company there should be no differentiation between A & L and Santander customers, whether new or existing. I was also led to understand that A&L are exiting the mortgage side of their business and all mortgages will be dealt with by Santander. This certainly appears to be the case when using their Web site as all mortgages even for existing A & L customers are referred to Santander, and when looking for a new mortgage deal I was told it would be through Santander. If this is the case, then its not that surprising that they have retained the higher SVR for their existing customers – they want them off their books!

  • P Coussey 27th March 2011 at 2:46 am

    This is a complete rip off of existing A & L customers who have had their branch network taken over by SANTANDER and are stuck due to LTVs from now switching products. They are the ONLY taken over building sociey mortgage holder who have been isolated into paying a higher SVR for 2 years now.

    Is this not a complete breach of the Financial services authority treating customers faily rules if not on some technicality it is moraly! 1% overcharge p.a. compared to ABBEY & Bradford & Bingley customers is a lot of money.

  • Nellie 28th May 2010 at 11:31 pm

    Why are A&L not changing the SVR for existing A&L customers, I wonder if this will happen in the future to bring all in line with the Santander products – though as the A&L SVR for existing customers is not a tracker will it make us better off when the BOE base rate goes up…