New mortgages for those wanting “budgetary certainty”

Alliance & Leicester has announced a number of new mortgage deals, two of which have a fixed rate of less than five per cent.

Available at a rate of 4.84 per cent, the first two-year fixed-rate mortgage has a fee of £999, while the second option offers a rate of 4.99 per cent with a fee of £599.

Both allow a maximum loan of £250,000 and revert to the lender’s standard variable rate (SVR) after December 31st 2008.

According to Stephen Leonard, Alliance & Leicester’s director of mortgages, the fixed-rate mortgages “offer real value for money” and could be beneficial for those wanting “budgetary certainty” from their mortgage.

In addition, the provider has reduced the rate on its FeeSaver mortgage deal by 0.05 per cent to 5.39 per cent.

However, following the increase in the Bank of England’s base rate earlier this month to five per cent, Alliance & Leicester has announced it is to raise its SVR by a quarter of a percentage point.

© Adfero Ltd

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