These comprise a two-year discount of 2.4%, giving a current rate of 3.39%. There is a £295 arrangement fee but existing Alliance & Leicester mortgage customers moving home receive a free basic valuation and £300 cashback.
The FeeSaver Mortgage offers a two-fixed rate of 3.59% fixed until 30 June 2005 (5.7% APR). There is no arrangement fee and first-time buyers and customers who are moving home also receive a free basic valuation and £250 cashback (£400 in Scotland). Remortgage customers also receive a free basic valuation for Alliance & Leicester's use and can choose between A&L's Mortgage Transfer Service or £250 cashback (£400 in Scotland). Existing Alliance & Leicester mortgage customers who are moving home also receive a free basic valuation and £300 cashback (£400 in Scotland)
Commenting on the loans, Paul Cooper, head of mortgages at Alliance & Leicester, said: "Our new mortgage offers complement our core fixed and discounted rate mortgages. The new two-year fixed rate feesaver product and our cashback mortgage are likely to appeal to first-time buyers, who want to spend their money on turning their first property into a dream home, and are therefore looking for a mortgage with low start up costs."
