Lender introduces “competitive” mortgage rates

Alliance & Leicester has become the latest lender to reduce the rates on its range of mortgages.

The company has cut costs across its line of fixed-rate homeowner loans, as well as introducing a number of new tracker deals.

Borrowers wanting a fixed-rate option can now obtain a two-year package at up to 60 per cent loan-to-value with a two per cent fee and pay 3.19 per cent in interest, while rates for a comparable tracker alternative start at 3.29 per cent.

Head of mortgage products at Alliance & Leicester Richard Taylor described the packages as “competitive”.

“These new deals offer customers a great choice,” he remarked, adding that those to choose to take out a longer, five-year fixed-rate loan will be given financial “certainty” through the guaranteed set monthly payment.

Homeowners looking to switch their mortgage in an effort to become debt free currently have a number of options to choose from, as NatWest, the Co-operative Bank and Lloyds TSB have all cut rates recently.

By Tom Musk