Alliance and Leicester mortgage rates cut

Date:Friday 16th January 2009
Author: Max Freedman

Alliance and Leicester mortgage rates have been reduced and several new products have been launched by the lender.

Two-year, fixed-rate deals now begin at 3.19 per cent.

Tracker mortgage deals have also been launched to incorporate the cut in the base rate.

A two-year tracker deal for a loan-to-value (LTV) of up to 60 per cent is available beginning at 3.29 per cent or at 4.09 per cent on a 75 per cent LTV.

In addition, two five-year fixed-rate mortgage products have been launched.

Rates are 4.64 per cent for a maximum LTV of 60 per cent, or 4.89 per cent for a 75 per cent maximum LTV, the latter of which offers a choice on fee options.

Meanwhile, LV= has taken on an age-banded method of tailoring interest rates on its lifetime mortgage products.

Vanessa Owen, head of equity release, commented: "We understand that the current economic downturn, along with falling house prices, is influencing the increasing number of older people choosing to stay in their homes longer, as opposed to downsizing into a smaller properly."