A&L 'praised' for new 125% LTV mortgage

04-Apr-2007

Alliance & Leicester (A&L) has been praised for the launch of a 125 per cent maximum loan-to-value (LTV) mortgage, which may be of interest to first time home buyers on a tight budget.

Although the lender has faced criticism from both the National Debtline and Citizens Advice, moneysupermarket.com believes A&L to be acting responsibly by placing the PlusMortgage product to target those who are suitable, which may include first time home buyers.

The mortgage is to only be made available through brokers and combines the features of a mortgage with unsecured borrowing.

"It is great to see that A&L is spicing up the first time buyer market with the launch of its Plus Mortgage," said Louise Cuming, head of mortgages at moneysupermarket.com.

"[Indeed,] lenders have historically seen lower percentage arrears in the 100 per cent pus market versus the 95 per cent sector," she added.

However, both Citizens Advice and the National Debtline criticised A&L for offering a mortgage which puts clients into negative equity from the moment of completion.

To find out more about this mortgage and other mortgages for first time buyers, click here.

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