Alliance & Leicester mortgage rates cut

Date:Wednesday 3rd December 2008
Author: Max Freedman

Alliance & Leicester mortgage rates for fixed-rate two-year deals have been reduced, the lender has announced.

For the two-year, fixed-rate FeeSaver mortgage, the rate has been cut from 6.39 per cent to 5.49 per cent for a maximum loan-to-value (LTV) of 75 per cent.

Another deal, fixed for two years, has been reduced from 5.59 per cent to 4.99 per cent, again for a maximum of 75 per cent LTV and with a product arrangement fee of one per cent.

There has also been a reduction from 5.79 per cent to 4.94 per cent for another 75 per cent LTV deal, with a fee of £599.

Meanwhile, Lorna Bourke, writing for City Wire, doubted that further reductions in the Bank of England base rate will impact much upon remortgagers' and new borrowers' rates.

She explained that most major lenders no longer accept applications for new standard variable rate (SVR) deals.

But SVRs are the only rates that reduce along with the base rate.