making the current pay rate 4.84 per cent, which reverts to BBR plus 0.99 per cent after the term of the deal.
The product is available up to 95 per cent loan-to-value (LTV), with a maximum loan of £500,000. A product fee of £1,499 is applicable. There are early repayment charges (ERC) of 3 per cent for the period of the deal.
A&L has also launched two two-year fixed rate deals at 5.11 per cent. The Premier two-year fix is available to new and existing A&L Premier current account customers and has a product fee of £599. The second two-year fix is available to all customers and has a product fee of £999.
Both mortgage deals are available up to 95 per cent LTV, with a maximum loan of £250,000. There are ERCs of 3 per cent and a 10 per cent overpayment facility.
Steve Brockman, director of A2B Mt Co Ltd, commented: “A lot of fixed products have had their rates dropped recently, so lenders are either anticipating a drop in interest rates or are buying business in because they are not getting the volumes. Any downward movement in rates is good, but I hope it’s not just a quick fix. Lenders must offer competitive rates now or their distribution will dry up.”
