Alliance & Leicester launches new mortgage range

Alliance & Leicester has announced that its mortgage range has been renewed, with its two-year base rate tracker having its rate reduced by 0.1 per cent.

This offer will now track at 0.16 per cent below the base rate for two years, giving it a current rate of 4.34 per cent, reverting to 0.99 per cent above the base rate – currently 5.49 per cent.

A borrowing level of up to 95 per cent of the property value is allowed on this product, which has a £499 product fee and an early repayment charge of three per cent of the loan amount and allows a maximum loan of £250,000.

There is also a fee-saver version of this mortgage, which has no fee but has a current tracker rate of 4.89 per cent, reverting to 0.99 per cent above the base rate for the term of the package.

Stephen Leonard, director of mortgages at Alliance & Leicester, said: “While fixed-rate mortgage rates are on the up, interest rates are historically low and stable and as a result base rate trackers are becoming more popular for many borrowers.

“In response to this demand we’ve cut the rates on our two-year base rate trackers to offer great value.”

Both forms of this Alliance & Leicester mortgage have flexible features, allowing borrowers to overpay every month by any amount, or in lump sums of £500 or more.

Through these overpayments, customers can build up an amount which they can borrow back or use to take payment holidays or underpay in some months.