Alliance & Leicester is launching a new mortgage range which includes a base tracker offering a 4.75 per cent initial pay rate.
The mortgage provider’s fully flexible long term base rate tracker gives buyers 4.75 per cent for one year, after which it reverts to Bank of England base rate plus 0.55 per cent.
The new three-year fixed rate mortgage costs 4.89 per cent until April 30, 2008, and then falls to Bank of England base rate plus 0.75 per cent for the life of the mortgage. Both these schemes allow customers to borrow 95 per cent LTV.
The new one-year fixed rate Switcher Special product charges 4.79 per cent until April 30, 2006 with no fee for switching. Both the three-year and one-year mortgages have an early repayment charge of three per cent – if redeemed before April 30, 2006, or April 30, 2008 respectively.
Alliance & Leicester director of mortgages Stephen Leonard says: “Our new one-year fixed rate mortgage is ideal for existing customers who are coming off a deal this year and looking for short-term security rather than long-term commitment.”