AA : launches mortgages for members

• Competitive 2, 3, 4 and 5-year fixed mortgage products offered exclusively to AA

• New mortgage range includes AA home emergency and repair cover and central heating emergency and repair cover
  • Mortgage MOT offered to members

The AA has today, for the first time, launched a range of mortgage products available exclusively to its breakdown members.

The range includes competitively priced 2, 3 and 5-year fixed rate mortgages and a best-buy 4-year fixed rate product, with the entire range being fees assisted. The mortgages are provided by Bank of Ireland UK.

As well as good rates, members can also benefit from the AA's home emergency and repair cover and central heating emergency and repair cover, for 12 months. Customers will also get a 15% discount on AA Home Insurance.

The AA's entry into mortgages is to help members save money, by encouraging them to look at their current mortgage circumstances. They are offering members a 'mortgage MOT' where they can call a team of experts to see if they could save money, from the AA Mortgage range. There are nearly two million borrowers on a Standard Variable Rate (SVR) and, despite the recent reduction on the BoE base rate, these rates are still likely to be above 3.8%.

People could be saving around £1,625* each year by switching from a default SVR to a better deal but despite the possible savings, the majority do not consider changing.

This is backed up by the AA's latest research** that found the average AA member has been on the same mortgage deal for over five years, and over a fifth have not reviewed their mortgage for more than ten years.

"This mortgage range has been developed to respond to the needs of our members. Lots of people are currently on mortgage deals where they are spending far more than they need to. This could be down to a combination of high fees and a lack of information, stopping them from switching to a better deal.

"We want to help our members by removing hidden costs and providing simple, straightforward mortgages, with all standard upfront fees included. We're offering each member a no obligation 'mortgage MOT' where members have the opportunity to speak with a mortgage expert to find out if they could be getting a better deal, from our mortgage range. This service aims to help them save money, even if that means recommending they stay with an existing deal."

The mortgage launch comes a year after the AA announced its long term partnership with Bank of Ireland UK and builds on its existing financial product offer which includes credit cards, savings accounts, cash ISAs and personal loans.

Further details can be found below or at www.theaa.com/mortgages

To arrange a Mortgage MOT, AA members should call 0800 169 6010 for a short 15 minute call with one of the team of trusted mortgage consultants, which will establish whether they could be saving money on monthly mortgage repayments. Members simply need to provide their AA membership number, approximate value of their home (or purchase price, postcode and year of purchase); current mortgage balance and interest rate they are currently paying. Lines are open Monday to Friday 8.30am - 8pm, Saturday 9am to 2pm, closed Sunday and bank holidays.

* Calculations based on a loan amount of £171,200 (80% of £214,000 (ONS House Price Index, June 2016)). Comparison between top 6 lenders (Market share figures CML, Aug 2015) ave. SVR of 3.98% (rates taken from lenders websites 16/08/2016) against an AA 2 year fixed rate mortgage of 2.48% with £0 arrangement fee. Monthly payments x 12 provides

£1,625 annual difference during the fixed term. Early repayment charges and other fees may apply and should be considered before changing your mortgage

** Populus interviewed 4,688 AA Members online, June 2016. Populus is a member of the British polling council and abides by its code of conduct.

Headland - 020 7367 5222 / AA_FS@headlandconsultancy.com

AA Press office - Ian Crowder, 01256 492844 / 07917 599793 / ian.crowder@theaa.com

AA Loans and Credit Cards are provided by Bank of Ireland UK. AA Financial Services Limited is a credit broker and not a lender.