Alliance and Leicester cuts mortgage rates

Edited by the Insidemoneytalk editorial team Aug 29, 2008

Alliance and Leicester's Mortgage deals have been re-priced and rates are being reduced on all bar one of its mortgage products, which remains unchanged.

The range has reduced by between 0.10% and 0.55% compared to products on the previous portfolio.

The new offers are available via the bank's branches, by telephone at Mortgage Direct and from brokers from Wednesday 27 August 2008.

Alliance and Leicester offers a full prime residential portfolio to a maximum of 85% LTV, with lower rates for mortgages with an LTV of 75% or below.

The new range includes: Two Year Fee Saver Base Rate Tracker 6.99% (new product): 6.99% (BBR +1.99%) then revert to BBR +1.99%.

No product fee.

Customers can borrow up to 85% of the property value.

Maximum loan ?1 million.

Full flexible features.

Free valuation.

Remortgage customers get ?200 cashback or free Mortgage Transfer Service.

Two Year Fixed Rate 5.99% (previously 6.14%): Fixed until 31 October 2010, then Standard Variable Rate (currently 7.19%).

1% product arrangement fee (previously 2%).

Customers can borrow up to 75% of the property value.

10% overpayment facility.

Maximum loan ?1 million.

Two Year Fixed Rate 6.19% (previously 6.64%): Fixed until 31 October 2010, then Standard Variable Rate (currently 7.19%).

?599 product arrangement fee.

Customers can borrow up to 75% of the property value.

10% overpayment facility.

Maximum loan ?250,000.

Three Year Fee Saver Fixed Rate 6.89% (previously 7.09%): Fixed until 31 October 2011, then Standard Variable Rate (currently 7.19%).

No product fee.

Customers can borrow up to 75% of the property value.

10% overpayment facility.

Maximum loan ?1 million.

Free valuation.

Remortgage customers get ?200 cashback or free Mortgage Transfer Service.

Richard Taylor, Head of Mortgage Products at Alliance and Leicester, said: "We are reducing the majority of the rates across our mortgage portfolio, which is great news for people looking for a new deal.

"These new mortgage products are available to both new and existing customers, with a number of options to choose from, including deals which benefit from no fees, as well as free valuation and legal fees.".