Alliance and Leicester Existing Customers Pledge

Alliance and Leicester Existing Customers Pledge

Alliance and Leicester has denied that it is turning its back on the mortgage market after a 30 per cent drop in profits.  A spokesman for Alliance and Leicester says they will focus on retaining its 100,000 mortgage customers, who will be coming off rates this year.  Profits for last year fell to £399m from £569m, hit by a £185m writedown of treasury assets.

PlusMortgage, which is Alliance and Leicester’s combined secured and unsecured loan product was withdrawn recently.  It had net advances of £625m, with a further £55m of unsecured loans.  

Our view

We suggest the mortgage and property market may be a little bleak and lenders that change their policy to a more secure lending approach will be in a better position in the long run.

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