Alliance & Leicester cuts mortgage rates

Alliance & Leicester's Mortgage deals have been re-priced and rates are being reduced on all bar one of its mortgage products, which remains unchanged.

The range has reduced by between 0.10% and 0.55% compared to products on the previous portfolio. The new offers are available via the bank's branches, by telephone at Mortgage Direct and from brokers from Wednesday 27 August 2008.

Alliance & Leicester offers a full prime residential portfolio to a maximum of 85% LTV, with lower rates for mortgages with an LTV of 75% or below. The new range includes:

Two Year Fee Saver Base Rate Tracker 6.99% (new product)

6.99% (BBR +1.99%) then revert to BBR +1.99%
No product fee
Customers can borrow up to 85% of the property value
Maximum loan £1 million
Full flexible features
Free valuation
Remortgage customers get £200 cashback or free Mortgage Transfer Service

Two Year Fixed Rate 5.99% (previously 6.14%)

Fixed until 31 October 2010, then Standard Variable Rate (currently 7.19%)
1% product arrangement fee (previously 2%)
Customers can borrow up to 75% of the property value
10% overpayment facility
Maximum loan £1 million

Two Year Fixed Rate 6.19% (previously 6.64%)

Fixed until 31 October 2010, then Standard Variable Rate (currently 7.19%)
£599 product arrangement fee
Customers can borrow up to 75% of the property value
10% overpayment facility
Maximum loan £250,000

Three Year Fee Saver Fixed Rate 6.89% (previously 7.09%)

Fixed until 31 October 2011, then Standard Variable Rate (currently 7.19%)
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

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

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