Alliance & Leicester cuts mortgage rates

Thursday, 30 October 2008 12:00

Alliance & Leicester has cut rates on all the products in its fixed-rate mortgage portfolio.

New two, three and five-year fixed-rate deals are being launched today with rates reduced by between 0.20 per cent and 0.30 per cent on previous deals.

And they are being unveiled as Alliance & Leicester also launches a Two-year Base Rate Tracker with a rate of 5.79 per cent, a loan-to-value (LTV) of 75 per cent and with a one per cent product arrangement fee.

All the new fixed-rate products are for loans of up to 75 per cent.

The two-year deal has a rate of 5.79 per cent, which is reduced from the previous 5.99 per cent, and there is a ten per cent overpayment facility.

The rate on the three year fixed-rate mortgage has been reduced from 6.24 per cent to 5.94 per cent. It comes with a £599 product arrangement fee and the ten per cent overpayment facility.

Meanwhile, the five-year fixed-rate comes in at 6.59 per cent, reduced from 6.89 per cent. There is no product fee, a ten per cent overpayment feature, free valuation and remortgage customers get £200 cashback or a free mortgage transfer service.

Richard Taylor, head of mortgage products at Alliance & Leicester, said: "We are reducing rates on all of our fixed-rate products in the mortgage portfolio, which is great news for people looking for a new deal.

"These new mortgage products offer customers a number of options to choose from, including deals which benefit from no fees, as well as valuation and legal fees."

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