Alliance & Leicester has introduced two new mortgage deals to its line-up, cutting the rate payable on it its two-year base rate tracker by 0.5 per cent to 4.99 per cent.

The company has also introduced a lower fee to its five-year flexible deal, cutting it from £299 to £200.

The two-year base rate tracker allows homeowners to borrow up to 95 per cent of the value of their property and is fee-free.

Homeowners will have to surrender a three per cent early repayment fee if the mortgage is redeemed during the first two years, however.

It also offers free valuation and a £250 cashback or mortgage transfer service for remortgagers, up to a maximum loan of £999,999.

The five-year discount fully flexible mortgage offers a 1.8 per cent discount on Alliance & Leicester's standard variable rate, currently 4.79 per cent.

It features no fees and no early repayment charges, up to a maximum 95 per cent of the properties property's value or £999,999.

"Our latest range of mortgages continues to offer choice and value for money to our customers," said Stephen Leonard of Alliance & Leicester.

"We've reduced the rate on our two year base rate tracker rate and cut the product fee on our five year discount, both these variable deals will suit those who have a degree of flexibility in their budget."

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