New mortgage products by Alliance & Leicester

Alliance & Leicester building society has announced the release of a new range of mortgage products.

Included in the new range is a stepped product, which has a fixed rate of 4.99 per cent for the first two years before moving to track 0.74 per cent above the base rate.

The stepper mortgage is available at up to 95 per cent of the property’s value for a product fee of £999.

Stephen Leonard, director of mortgages at Alliance & Leicester, said the products are aimed at first-time buyers and described them as “the lifeblood of the housing market”.

He added that the stepped mortgage product was intended to help first-time buyers “keep their costs low during the early years of homeownership”.

Other products unveiled include a two-year base rate tracker mortgage and a reduced rate on a five-year discount mortgage.

Alliance & Leicester recently said it was looking at launching a mortgage product that combined a traditional mortgage loan with an unsecured sum, although this has yet to materialise.

© Adfero Ltd

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