Alliance and leicester announce new tracker mortgage

Published: June 27, 2008

The Alliance and Leicester have today announced a new two year tracker mortgage priced at less than 6%. The new scheme is available to both new and existing customers and is 0.98% above the Bank of England base rate for two years, giving a current rate of 5.98%. At the end of the two years, the rate will revert to Bank of England base rate plus 1.49%.

The scheme is available from today, and is available for customers wishing to borrow up to 75% of the value of the property. The maximum loan is £1million and there is an arrangement fee of £999. The new mortgage deal has built in flexibility and will allow both overpayments and lump sum reductions, with such reductions building up credits which can be used for borrowing back, reduced payments or payment holidays. Richard Taylor, Head of Mortgage Products at Alliance & Leicester said,

"The addition of this new product to our mortgage portfolio demonstrates Alliance & Leicester’s commitment to the mortgage market. With both flexible features and a headline rate below 6%, it represents a great deal for both new and existing customers, particularly as fixed rate pricing continues to rise across the market."