Alliance & Leicester cuts fixed rate mortgages

Alliance & Leicester has announced further cuts on fixed rate mortgages for those seeking financial packages of up to 75 per cent loan-to-value.

The firm is cutting the interest on its two and five-year fixed rate deals by 0.2 per cent, while three-year fixed rate mortgages have seen a decrease of 0.15 per cent.

Head of mortgage products at Alliance & Leicester Richard Taylor noted that lower swap rates was the reason the lender was able to pass on the savings to customers.

“Our fixed rate mortgages offer competitive rates for those who seek budgetary certainty by fixing their monthly payments,” he noted.

The move may be welcomed by those struggling with their debt management, as taking out such a mortgage will see payments being fixed until at least December 2010.

Abbey recently announced a similar move, cutting rates on its fixed rate options by as much as 0.35 per cent.

By Tom Musk