On the prime self-cert range, the two-year fixed rate has been reduced to 6.14 per cent and the two-year tracker has fallen to Bank Base Rate (BBR) minus 0.15 per cent. There is a maximum loan-to-value (LTV) of 85 per cent on both deals. The fixed rate has early repayment charges (ERCs) of 6 per cent over the term, while the tracker’s ERC will be 6 per cent in year one and 5 per cent in year two.
The near-prime buy-to-let two-year fix is set at 6.05 per cent and reverts to BBR plus 2.49 per cent, while the near-prime two-year fix is 6.03 per cent and reverts to BBR plus 2.39 per cent. Both are available up to 75 per cent LTV, with 6 per cent ERC for two years.
All have an arrangement fee of £1,999.
Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, said: “We are continuing to review and improve our specialist mortgages to ensure they offer real choice and value for money. Our latest self-cert and near-prime deals are available to both new and existing borrowers.”
Roy New, a London-based sole broker, commented: “I don’t like the arrangement fee. If the rates are comparable with another lender with much lower fees, then A&L won’t get a look in. The rates are pretty competitive, but if it wants to sell the tranche of money it has, it needs to drop the fees.”
