Alliance & Leicester launches competitive new mortgage deals

11 April 2005
Alliance & Leicester has announced the launch of a number of competitive new mortgage deals, featuring both fixed rate and rate tracker mortgages.

Two new fixed rate deals offer the security of monthly payments at a fixed, low rate. Both cost £395 in product fees and allow borrowers to take out as much as 95 per cent of their property value.

The two year rate offers 5.6 per cent APR fixed until June 30th 2007, after which the Bank of England base rate plus 0.75 per cent is payable for the life of the mortgage.

The five year rate deal is at 5.5 per cent APR fixed until June 30th 2010, followed by the same Bank of England base rate plus 0.75 per cent deal.

The two rate tracker deals offer variable payments linked to the Bank of England base rate.

"Due to customer demand we have also introduced a new range of two year base rate trackers for those who prefer variable payments linked to the base rate, and who want to take advantage of the flexible features, such as overpaying their mortgage to reduce their term," Stephen Leonard, director of mortgages at Alliance & Leicester, explained.

The Feesaver rate tracker option allows customers to waive the product fee. Whilst it has a slightly higher APR rate than its fee-paying sister deal, Mr Leonard said he considered it ideal for first-time buyers and those looking to remortgage.

"Our Feesaver option, which is available on most of our mortgages, continues to be a popular choice for first time buyers and remortgage customers who don't want any up-front fees, and who can benefit from cashback and a refund of their valuation fee," Mr Leonard stated.

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