A&L furthers range

Stepped Mortgage

• 4.99% (7.6% APR) fixed for two years, then tracking Bank of England Base Rate plus 0.74% for one year (current pay rate 5.99%) then Standard Variable Rate (currently 7.39%)
• Customers can borrow up to 95% of the property value
• Product fee - £999
• Maximum loan - £999,999
• Early repayment charge – 3% of the outstanding balance if the mortgage is redeemed during the three year offer period
• 10% overpayment facility

'Intermediary special' – High loan-to-value purchase two-year fixed rate

• 4.99% (7.4% APR) fixed until 31 March 2009, then Standard Variable Rate (currently 7.39%)
• Available to those buying or moving house, and all existing Alliance & Leicester mortgage customers
• Customers can borrow over 90% of the property value
• Product fee - £999
• Early repayment charge – 3% of the outstanding balance if the mortgage is redeemed before 31 March 2009
• 10% overpayment facility

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: "Our mortgage range includes several deals which are priced below 5% which is great news for brokers and their clients. In particular, we've launched two deals aimed at helping first-time buyers make that all-important first step onto the housing ladder.

"We have launched a stepped mortgage which is ideal for those who are buying a home and want to keep their initial costs as low as possible whilst not suffering from a 'payment shock' in two years' time. This deal offers great value along with the budgetary certainty that comes from fixed payments in the first two years."