The tracker products have been reduced by 0.06 per cent and start at 4.53 per cent for two years, after which they will revert to Bank of England Base Rate plus 0.99 per cent. The maximum loan amount is £250,000, with the deal available up to 95 per cent loan-to-value (LTV). A fee of £599 exists on the product. Early repayment charges (ERC) are 3 per cent of the loan if the mortgage is redeemed in full during the two-year offer period.
Two-year fixed fee saver rates stand at at 5.44 per cent until 30 September 2008, reverting to the standard variable rate (SVR), currently 6.84 per cent. The mortgage is available up to 95 per cent LTV, and features include £250 cashback, no product fees and a free valuation. The maximum loan limit is set at £999,999, with an overpayment facility of 10 per cent and an ERC of 3 per cent if the mortgage is redeemed before 30 September 2008.
Other products reduced include a three-year fixed rate at 5.14 per cent and a five-year fixed rate at 5.19 per cent.
Stephen Leonard, director of mortgages at A&L, said: “Despite the recent increase in the Bank of England Base Rate, we’ve been experiencing a high level of applications and a growth in the popularity of variable rate deals. In response to this, we’ve reduced the rates on our two-year Base Rate trackers to accommodate this demand. Our fixed rates continue to be competitive and will suit those who prefer set monthly payments for budgetary certainty.”
Andy Pratt, chief operations officer at brokerage Alexander Hall, commented: “Both mortgages look like good, competitive products, particularly as they go up to 95 per cent LTV and will help first-time-buyers get onto the property ladder. My expectation is they will be some competitive products during September.”
