Alliance & Leicester is launching two new mortgage deals, the first of which is a two-year tracker that will run at 0.31 per cent below base rate, currently 4.69 per cent, for two years.
This product, which is available to customers buying or moving house, will then revert to 0.99 per cent above base rate, currently 5.99 per cent.
A product fee of £599 is payable on this mortgage, as well as charges of three per cent of the outstanding loan balance if the mortgage is redeemed during the two-year offer period.
The alternative offer will track at 0.14 per cent below base rate for two years, but will not charge a product fee.
Both of the mortgages allow customers to borrow up to 95 per cent of the value of a property and have flexible features, allowing borrowers to overpay every month and take payment holidays.
Stephen Leonard, director of mortgages at the lender, said: "The latest mortgages from Alliance & Leicester demonstrate our recognition of both new and existing borrowers.
"Unlike some other lenders, we ensure our existing borrowers have our best deals available to them, ensuring a level playing field with new borrowers."For more information on the best mortgage deals, click here.
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