Alliance & Leicester is offering fixed rate mortgages below the Bank of England's base rate.
The bank is offering a two-year fix at 3.99 per cent for up to 80 per cent LTV. Rates go up to 4.35 per cent for 80.1 to 90 per cent LTV, and 5.30 per cent for LTVs of 90.1 per cent and above.
There are no compulsory insurances with this product and is available to first and next time buyers, and remortgage customers.
A redemption penalty of six months' gross interest runs until December 1, 2003. The bank's SVR is currently 8.60 per cent. Alliance & Leicester charges an arrangement fee of 0.5 per cent of the loan amount up to a maximum of £300 on its fixes.