Alliance & Leicester cuts fixed rate mortgages

Alliance & Leicester is launching a new range of mortgages. All fixed rate products will be reduced by between 0.20% and 0.30% compared to products on the previous portfolio.

The new offers are available from Thursday 30 October 2008 via brokers, Alliance & Leicester branches and by telephone from Mortgage Direct.

Alliance & Leicester offers a full prime residential portfolio on products up to 75% LTV, with selected products also available to a maximum of 85% LTV. The new range includes:

Two Year Fixed Rate 5.79% (previously 5.99%)

Fixed until 31 December 2010, then Standard Variable Rate (currently 6.94%)
1% product arrangement fee
Customers can borrow up to 75% of the property value
10% overpayment facility
Maximum loan £1 million

Three Year Fixed Rate 5.94% (previously 6.24%)

Fixed until 31 December 2011, then Standard Variable Rate (currently 6.94%)
£599 product arrangement fee
Customers can borrow up to 75% of the property value
10% overpayment facility
Maximum loan £1 million

Five Year Fee Saver Fixed Rate 6.59% (previously 6.89%)

Fixed until 31 December 2013, then Standard Variable Rate (currently 6.94%)
No product fee
Customers can borrow up to 75% of the property value
10% overpayment facility
Maximum loan £1 million
Free valuation
Remortgage customers get £200 cashback or free Mortgage Transfer Service

Two Year Base Rate Tracker 5.79% (new product)

5.79% (BBR +1.29%) then Standard Variable Rate (currently 6.94%)
1% product arrangement fee
Customers can borrow up to 75% of the property value
Maximum loan £1 million
Full flexible features

Richard Taylor, Head of Mortgage Products at Alliance & Leicester, said: "We are reducing rates on all of our fixed rate products in the mortgage portfolio, which is great news for people looking for a new deal.

"These new mortgage products offer customers a number of options to choose from, including deals which benefit from no fees, as well as free valuation and legal fees."