Alliance & Leicester - new mortgage deals

Alliance & Leicester is launching a new range of mortgages, which are available from Wednesday 28 February and include:

New Stepped Mortgage

4.99% (7.6% APR) fixed for two years, then tracking Bank of England Base Rate plus 0.74% for one year (currently 5.99%) then Standard Variable Rate (currently 7.39%)
Customers can borrow up to 95% of the property value
Product fee - £999
Maximum loan - £999,999
Early repayment charge – 3% of the outstanding balance if the mortgage is redeemed during the three year offer period
10% overpayment facility

Remortgage Two Year Base Rate Tracker

Bank of England Base Rate (BBR) minus 0.12% for two years,
current rate 5.13% (6.3% APR) then tracking BBR plus 0.99% (currently 6.24%)
Customers can borrow over 90% of the property value
Product fee - £599
Early repayment fee - 3% of the outstanding balance if the mortgage is redeemed during the two year offer period
Free valuation
£250 cashback or Mortgage Transfer Service
Full flexible features
Maximum loan - £999,999

New Five Year Discount (reduced rate)

2.16% discount off Alliance & Leicester’s Standard Variable Rate (currently 7.39%) for five years - current rate: 5.23% (6.7% APR)
Early repayment fee – 3% of the outstanding balance if the mortgage is redeemed during the offer period
Customers can borrow up to 95% of the property value
Arrangement fee - £599
Full flexible features

Stephen Leonard, Director of Mortgages at Alliance & Leicester said: “First time buyers are the life blood of the housing market and so we’ve responded to their needs by launching a new stepped deal aimed at keeping their costs low during the early years of homeownership. This deal combines the certainty of a two year fixed rate at 4.99% with the transparency of a third year tracking the Bank of England Base Rate.”