Alliance & Leicester launches lower fixed rate mortgage deals

Alliance & Leicester has launched new lower priced two, three and five year residential and Buy to Let fixed rates. A new residential two year 5.94% Base Rate tracker, with a 1% fee and no early redemption charge, has also been introduced.

The new offers are available via the bank’s branches, Mortgage Direct and brokers, and include:

Two Year Fixed Rate - 4.99% (new product)

Fixed until 31 March 2010 then Standard Variable Rate (currently 7.69%)
2% arrangement fee
Customers can borrow up to 90% of the property value
Maximum loan - £1 million
10% overpayment facility

Three and Five Year Fixed Rates - 5.79% (previously 5.99%)

5.79%fixed until 31 March 2011 or 31 March 2013, then Standard Variable Rate
Customers can borrow up to 90% of the property value
Product fee - £599
Maximum loan - £1 million
10% overpayment facility

Buy to Let Two Year Fixed Rate - 5.44% (previously 5.98%)

5.44% fixed until 31 March 2010, then Base Rate +2.19% (tracker)
Customers can borrow up to 85% of the property value
2% arrangement fee
100% rental cover at Pay Rate up to 75% LTV and above 75% LTV 120% rental cover at Pay Rate with ERC at 5% for two years.
Maximum loan - £500,000
10% overpayment facility

Buy to Let Three Year Fixed Rate - 5.74% (new product)

5.74% fixed until 31 March 2011, then Base Rate +2.19% (tracker)
Customers can borrow up to 85% of the property value
1.5% arrangement fee
100% rental cover at Pay Rate up to 75% LTV and above 75% LTV 120% rental cover at Pay Rate with ERC at 5% for two years.
Maximum loan - £500,000
10% overpayment facility

Richard Taylor, Head of Mortgages at Alliance & Leicester, said: “These new reduced fixed rate deals are available to both new and existing customers seeking to buy a home, re-mortgage or invest in a property to let. The range of products we have on offer means customers can choose the right package to fit their needs and fix their monthly mortgage payments for two, three or five years.

“The Buy to Let Two Year Fixed Rate product with a percentage arrangement fee provides landlords with a better value offer, and with the addition of new three and five year fixed rate options they now have the opportunity to fix their rates and gain payment certainty for a term that suits them.”