The products include:
2 year Base Rate Tracker at 4.99 per cent
Two fixed rate deals priced below Bank of England Base Rate
Following Bank of England base rate rise, A& L’s SVR to increase
Alliance & Leicester is launching a new range of prime mortgages, which is available from Tuesday 23 January and includes:
Two Year Base Rate Tracker (Purchase special)
Bank of England Base Rate minus 0.26 per centfor two years, current rate 4.99 per cent (6.3 per cent APR)
Available to new and existing customers who are buying or moving house
Customers can borrow up to 95% of the property value
Product fee - £599
Early repayment charges apply in the first two years
Full flexible features1
Maximum loan - £250,000
Two Year Fixed Rate
5.24% (7.3% APR) fixed until 28 February 2009, then Standard Variable Rate (currently 7.39%)
Customers can borrow up to 95% of the property value
Product fee - £999
Early repayment charges apply until 28 February 2009
Maximum loan - £250,000
10% overpayment facility
Three Year Fixed Rate
5.44% (7.1% APR) fixed until 28 February 2010, then Standard Variable Rate (currently 7.39%)
Customers can borrow up to 95% of the property value
Product fee - £599
Early repayment charges apply until 28 February 2010
10% overpayment facility
Stephen Leonard, Director of Mortgages at Alliance & Leicester comments: “We continue to present a range of mortgages that offer great choice and value. Our fixed rates remain competitive and we have a two year fixed rate deal (5.24%) priced below the Bank of England Base Rate (5.25%). The three year fixed rate will suit those who seek budgetary security over a longer period than two years but don’t wish to commit to a deal for five years. We also have a base rate tracker available at sub-five percent for those new and existing customers who are buying or moving house and prefer variable deals.”
Alliance & Leicester’s SVR
Following the decision by the Bank of England to increase the base rate, Alliance & Leicester has announced a 0.30% increase in its SVR for new customers as from Tuesday 23 January. The SVR will be 7.39% (from 7.09%).
SVR and discounted rate mortgages for existing customers will change from 2 February. Alliance & Leicester mortgage products that track the Bank of England base rate are also subject to change, increasing by 0.25%. New products increased from 15 January, with existing borrower products increasing from 1 February.
Alliance & Leicester will be writing to existing mortgage customers to advise them of the change - with the first of the higher mortgage payments not being made until March. Please note that the majority of borrowers benefit from Fixed or Tracker mortgages. The proportion of mortgage balances paying SVR was 11% as at end of June 2006.
Changes will also be made to Alliance & Leicester’s savings accounts on 2 February and an announcement regarding this will be made in due course.
