New deals launched by Alliance&Leicester

Two new mortgages have been launched by Alliance & Leicester, one each aimed at owner-occupiers and buy-to-let investors.

The first deal is aimed at attracting those interested in buy-to-let mortgages, offering two years fixed at 5.54 per cent.

Once the fixed-rate period comes to an end in June 2010, borrowers will pay the base rate of interest plus 2.14 per cent.

Currently that would be 7.39 per cent but the majority of analysts expect the base rate to fall markedly over the next 12 months.

Alliance & Leicester's second deal is a two-year fixed-rate mortgage with a rate of 5.84 per cent.

When this fixed-rate period comes to an end in June 2010, borrowers will be reverted to the lender's standard variable rate (currently 7.44 per cent).

The loan is available up to a maximum of £250,000 and 90 per cent of the property value.

"This new range of mortgage products continue to present a good choice of residential and buy-to-let products with customers being offered a choice of rates, product fees and the term they would like their mortgage to run," said Richard Taylor, head of mortgages at Alliance & Leicester.

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