Alliance and Leicester, the seventh largest
bank and
financial services provider in the UK, has launched a range of new
rates on its
mortgage products, with the aim of making them more accessible to new customers. The reductions are across the board and incorporate
fixed-rate mortgages.
The popular two-year
fixed-rate mortgage will see rates lowered by 0.2 per cent for the next few years, until March 2008. This leaves a rate of 4.39 per cent. Similarly, the two-year fixed-rate FeeSaver mortgage will also carry a 0.1 per cent reduction in rate, leaving it standing at 4.99 per cent.
Once the initial fixed-rate period of the
loan expires, repayments will be calculated according to the Bank of England base rate plus 0.99 per cent. This rate will stand for the lifetime of the mortgage loan.
Both mortgage deals have a maximum loan to value (LTV) of 95 per cent. Borrowers are also allowed a 10 per cent overpayment facility.
Alliance and Leicester experts advise that these features make the mortgage package ideal for borrowers who are on a budget.
The reductions come at a time when
lenders are anxious to remain competitive in a dynamic market.
