Alliance & Leicester rates decrease

Date:Tuesday 21st October 2008

Alliance & Leicester has announced a reduction in its standard variable rate (SVR).

Existing customers on SVR or SVR related products will see the change in their mortgage rates come into force from November 2nd.

New customers on Alliance & Leicester base rate tracker deals had their rate reduced by 0.5 per cent on October 13th as the Bank of England cut the base rate.

Existing customers with a base rate tracker mortgage will experience the rate decrease from November 1st.

In related news, gross mortgage lending declined in September, according to figures from the Council of Mortgage Lenders (CML).

The total of gross lending for the year's third quarter is estimated at £62 billion.

This represents a 16 per cent fall from the year's second quarter and a 37 per cent drop from the third quarter of 2007.

Michael Coogan, director general of the CML, said consumer demand was in decline and constraints on funding were ongoing.

He predicted monthly lending figures to continue to be "dampened" for this year and 2009's first quarter.