Alliance and Leicester (A&L) has unveiled a new selection of mortgage products, including a two-year fixed-rate package for remortgages.
Allowing borrowers to take out up to 95 per cent of the property's value at a fixed rate of 4.64 per cent until October 31st 2008, the remortgage package then reverts to A&L's standard variable rate, currently at 6.84 per cent.
Including a product fee of £799 and an early repayment charge (ERC), applicable if the balance is settled before the fixed rate period expires, the maximum amount that can be borrowed is £250,000.
There is also a three-year fixed rate at 4.94 per cent until October 31st, 2009 with a higher maximum loan (up to £999,999) and lower product fee (£599), although it also has an ERC.
Similarly, A&L is offering a two-year base rate tracker, which is fixed to the Bank of England base rate minus 0.36 per cent for two years (currently would be equivalent to 4.39 per cent). After the initial two-year period, as with the previously mentioned two mortgages, this loan reverts to the bank's standard variable rate.
Mehrdad Yousefi, head of intermediary mortgages at A&L, said that this "sharpening" of the institution's mortgage offerings made the packages more competitive in the current market.To read more about remortgaging, click here.
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