Fresh new deals have hit the mortgage market lately with Alliance & Leicester launching competitive new deals including both fixed rate as well as rate tracker mortgages.
In the fixed rate bracket, A & L has come up with two deals, a 2 year fixed rate deal and a 5 year deal. The 2-year fixed deal is being offered at a fixed rate of 5.6% while the 5-year deal has a fixed rate of 5.5%. The maximum loan to value (LTV) in both these deals is put at 95%, with 3% early repayment charges till the fixed tenure and a £395 product fee. These new fixed deals launched by A & L will provide security of fixed monthly payments to customers at appealing low rates.
As for the two new rate tracker deals, both the deals will offer variable payments at the base rate fixed by the Bank of England.
Stephen Leonard, Alliance & Leicester’s mortgage director talked about the launch of the new deals and said that, "our fixed rate mortgages continue to be highly competitive and allow borrowers to benefit from the security of a fixed monthly payment at a great low rate. Due to customer demand we have also introduced a new range of two year base rate trackers for those who prefer variable payments linked to the base rate, and who want to take advantage of the flexible features, such as overpaying their mortgage to reduce their term."
Meanwhile, there is also a feesaver rate tracker option with A & L that permits borrowers to relinquish the product fee. This option also lets borrowers derive the benefits of cashback and valuation fee refund facilities. Despite having a higher APR rate than its fee-paying deals, the fee saver deals still stand very popular amongst remortgagers and first-time buyers, according to Leonard.
Posted
on : Tue, 12 Apr 2005 00:00 GMT | Mortgages News
By : Pippa Fielding
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