Abbey and Alliance & Leicester, part of Santander, are today cutting mortgage rates and introducing a new 90% LTV mortgage which will be good news for first time buyers.

The mortgage rate cuts are on a range of products, including 2 year purchase and remortgage trackers whith rates reducing by up to 0.3%, now from 2.94% for up to 75% LTV.

The new 90% LTV mortgage is available as a 3 year fixed deal with a market leading rate of 5.99% and a £495 fee. This includes a free valuation and £250 cashback on completion.

There’s also a new 75% LTV, 2 year fixed rate mortgage at 4.15% with a £995 fee.

Nici Audhlam-Gardiner, Director of Mortgages at Abbey and Alliance & Leicester said: “The latest reduction in rates is yet more good news for borrowers.  With speculation that the Bank of England base rate might stay put for a while longer, trackers are back in favour and to help those borrowers looking for a tracker, we have reduced rates.”

The reduced rate and new mortgages are available from Abbey and Alliance & Leicester, via their branches and telephone.

Abbey and Alliance & leicester (and the savings business of Bradford & Bingley) will become known as Santander by the end of 2010.
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