A&L launches two-year fixes

By Kay McLellan

22 Nov 2006

Two-Year Fixed Rate

4.84% (7.0% APR) fixed until 31 December 2008, then Standard Variable Rate (currently 7.09%)
Customers can borrow up to 95% of the property value
Product fee - £999
Early repayment charge – 3% of the outstanding balance if the mortgage is redeemed before 31 December 2008
Maximum loan - £250,000
10% overpayment facility

Two-Year Fixed Rate

4.99% (7.0% APR) fixed until 31 December 2008, then Standard Variable Rate (SVR) (currently 7.09%)
Customers can borrow up to 95% of the property value
Product fee - £599
Early repayment charge – 3% of the outstanding balance if the mortgage is redeemed before 31 December 2008
Maximum loan - £250,000
10% overpayment facility

Improved Two-Year Fixed Rate FeeSaver (rate reduced by 0.05%)

5.39% (7.0% APR) fixed until 31 December 2008, then Standard Variable Rate (currently 7.09%)
Customers can borrow up to 95% of the property value
No product fee
Free valuation
Remortgage customers receive £250 Cashback or free Mortgage Transfer Service
Early repayment charge – 3% of the outstanding balance if the mortgage is redeemed before 31 December 2008
10% overpayment facility

Stephen Leonard, director of mortgages at Alliance & Leicester, commented: “Our fixed rate mortgages continue to offer real value for money with a choice of deals available below 5 per cent which is ideal for those borrowers who want budgetary certainty from their monthly payments. We’ve also been able to reduce the rate on our FeeSaver deal which will particularly appeal to first time buyers and remortgagers who want to minimise their up-front costs.”

Alliance & Leicester’s SVR

Following the decision by the Bank of England to increase the base rate by 0.25%, Alliance & Leicester has announced a 0.25% increase in its SVR for new customers as from Wednesday 22 November. The SVR will be 7.09% (0.25% up from 6.84%).

Discounted rate mortgages for existing customers will change from 2 December. Alliance & Leicester mortgage products that track the Bank of England Base Rate are also subject to change, with existing borrower products increasing by 0.25% from 1 December 2006.