Alliance & Leicester launches new range of prime mortgage deals

Alliance & Leicester is launching a new range of prime mortgages, which is available from Wednesday 23 May and includes:

Two Year Fixed Rate

5.49% (7.5% APR) fixed until 30 June 2009, then Standard Variable Rate (currently 7.64%)
Customers can borrow up to 95% of the property value
Product fee - £599
Early repayment charges apply until 30 June 2009
Maximum loan - £250,000
10% overpayment facility

Two Year Base Rate Tracker

Bank of England Base Rate minus 0.27% for two years, current rate 5.23% (6.5% APR)
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 - £999,999

Improved Five Year Fixed Rate FeeSaver (rate reduced by 0.11%)

5.98% (7.2% APR) fixed until 30 June 2012, then Standard Variable Rate (currently 7.64%)
Customers can borrow up to 95% of the property value
No product fee
Free valuation
Remortgage customers receive £250 Cashback or free Mortgage Transfer Service
Early repayment charges apply until 30 June 2012
10% overpayment facility
Maximum loan - £999,999

Stephen Leonard, Director of Mortgages at Alliance & Leicester comments: “Our latest range of mortgages offers great value for money to new and existing customers. We have a market-leading 2 year base rate tracker priced at 5.23% and we have a highly competitive 2 year fixed rate at 5.49%. We’ve also improved some of our FeeSaver deals which are ideal for first time buyers who want to minimise up-front fees. These, along with the rest of the range, offer great choice to borrowers, whether they are looking for the security of a fixed rate or the leading headline rate of a variable rate.”

Alliance & Leicester’s SVR

Following the decision by the Bank of England to increase the base rate, Alliance & Leicester has announced a 0.25% increase in its SVR for new customers as from Wednesday 23 May. The SVR will be 7.64% (from 7.39%).

SVR and discounted rate mortgages change for new customers from 23 May and for existing customers on 2 June. Alliance & Leicester mortgage products that track the Bank of England base rate are also subject to change, increasing by 0.25%. New tracker products increased from 14 May, with existing borrower products increasing from 1 June. Alliance & Leicester will be writing to existing mortgage customers to advise them of the change.

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