Alliance & Leicester cuts fixed rate mortgage
Friday, 28 Mar 2008 16:13
Alliance & Leicester has cut one of its fixed rate mortgage deals.
The bank follows a number of lenders that have been forced to cut mortgage deals amid the credit crunch.
Alliance & Leicester will drop its 4.99 per cent two-year fixed rate mortgage from the close of business on March 29th.
Borrowers whose applications are currently being processed are expected to still get the deal.
The lender has attributed the decision to the product's popularity – as many lenders are increasing their mortgage rates as the reason abandoning the mortgage.
Richard Taylor, head of mortgage products at Alliance & Leicester, said: "Over the past few days we have seen a high demand for our 4.99 per cent two-year fixed rate product and therefore we have taken the decision to remove it from the range, in order to manage the volume of business we are receiving at present."
It is not clear when or if the mortgage will be made available again.