New mortgage deals from Alliance & Leicester

Alliance & Leicester is launching a new range of residential, Buy to Let and PlusMortgage products, which are available from Friday 21 December 2007. The current range of fixed rate offers remains available. The range includes:

Two Year Base Rate Tracker - 5.74%

5.74% (BBR +0.24%)
Customers can borrow up to 90% of the property value
Product fee - £599
Maximum loan - £1 million
Full flexible features

Two Year Fixed Rate - 5.87%

5.87%fixed until 31 January 2010, then Standard Variable Rate
Customers can borrow up to 90% of the property value
Product fee - £599
Maximum loan - £250,000
10% overpayment facility

Buy to Let 2 Year Base Rate Tracker - 5.79%

5.79% (BBR +0.29%)
Customers can borrow up to 85% of the property value
Product fee - £1,999
100% rental cover at Pay Rate upto75% LTV and above 75% LTV 120% rental cover at Pay Rate with ERC at 5% for two years.
Maximum loan - £250,000
10% overpayment facility

Existing customers

Alliance & Leicester will be changing its Standard Variable Rate for existing customers from 2 January 2008 to 7.69%, down 0.20% from 7.89%. The proportion of mortgage balances paying SVR is below 8%.

Existing customers on Base Rate Tracker mortgages will see their rates fall by 0.25% from 1 January 2008. The majority of Alliance & Leicester customers are on Fixed Rate or Base Rate Tracker deals.

The new portfolio, available from 21 December 2007, includes the changes to the SVR and tracker products.

Richard Taylor, Head of Mortgages at Alliance & Leicester comments: “We continue to present a range of residential, Buy to Let and PlusMortgage products that offer great choice and value. Our fixed rate mortgages remain competitive for those who seek budgetary security and the base rate tracker remains an excellent option for those who hope to take further advantage of any potential rate cuts over the coming year.”