Alliance & Leicester, part of the Santander Group, is cutting rates on its two year fixed rate mortgages from tomorrow, 12 December. Rates will be reduced by up to 0.5% on these products with the best rate of 3.99% offered on a mortgage where a customer wants to borrow up to 60% of the property value. There is a 1% fee.
The other two year fixed rate mortgages have varying rates depending on the amount borrowed compared to the property value, known as the loan to value (LTV) percentage e.g. with an LTV of 75% and a 1% fee the rate is 4.49%.
A two year base rate tracker mortgage is also being introduced. This is at a rate of 3.99% with a 1% fee and is for a mortgage of 60% LTV.
Richard Taylor, head of Mortgage products at Alliance & Leicester said ‘We are delighted to be able to bring these products to market, demonstrating that Alliance & Leicester is competing strongly in the new business mortgage market’.
Alliance & Leicester’s current standard variable rate (SVR) is 5.84%. This will be reduced to 5.34% on 2 January 2009.
Abbey, also part of the Santander Group, is also cutting rates on its two-year fixed rate mortgages. For a 75% LTV mortgage, a two year fixed deal has a 4.49% interest rate and for a 60% LTV the rate has dropped to 4.29%. There is a £995 fee.