New mortgage deals from Alliance & Leicester

Alliance & Leicester is launching a new range of prime mortgages, available from Tuesday 23 January.

Two Year Base Rate Tracker (Purchase special)

Bank of England Base Rate minus 0.26% for two years, current rate 4.99% (6.3% APR)
Available to new and existing customers who are buying or moving house
Customers can borrow up to 95% of the property value
Product fee - £599
Early repayment charges apply in the first two years
Full flexible features
Maximum loan - £250,000

Two Year Fixed Rate

5.24% (7.3% APR) fixed until 28 February 2009, then Standard Variable Rate (currently 7.39%)
Customers can borrow up to 95% of the property value
Product fee - £999
Early repayment charges apply until 28 February 2009
Maximum loan - £250,000
10% overpayment facility

Three Year Fixed Rate

5.44% (7.1% APR) fixed until 28 February 2010, then Standard Variable Rate (currently 7.39%)
Customers can borrow up to 95% of the property value
Product fee - £599
Early repayment charges apply until 28 February 2010
10% overpayment facility

Stephen Leonard, Director of Mortgages at Alliance & Leicester comments: “We continue to present a range of mortgages that offer great choice and value. Our fixed rates remain competitive and we have a two year fixed rate deal (5.24%) priced below the Bank of England Base Rate (5.25%). The three year fixed rate will suit those who seek budgetary security over a longer period than two years but don’t wish to commit to a deal for five years. We also have a base rate tracker available at sub-five percent for those new and existing customers who are buying or moving house and prefer variable deals.”

Alliance & Leicester’s SVR

Following the decision by the Bank of England to increase the base rate, Alliance & Leicester has announced a 0.30% increase in its SVR for new customers as from Tuesday 23 January. The SVR will be 7.39% (from 7.09%).

SVR and discounted rate mortgages for existing customers will change from 2 February. Alliance & Leicester mortgage products that track the Bank of England base rate are also subject to change, increasing by 0.25%. New products increased from 15 January, with existing borrower products increasing from 1 February.

Alliance & Leicester will be writing to existing mortgage customers to advise them of the change - with the first of the higher mortgage payments not being made until March. Please note that the majority of borrowers benefit from Fixed or Tracker mortgages. The proportion of mortgage balances paying SVR was 11% as at end of June 2006.

Changes will also be made to Alliance & Leicester’s savings accounts on 2 February and an announcement regarding this will be made in due course.