A&L cuts rates on two-year fixes

Alliance & Leicester (A&L) has unveiled a new range of fixed-rate mortgages, available from 4th December.

The lender, which is part of the Santander group, is reducing rates by up to 0.90%.

Its offering includes a two-year deal at 4.94% (previously 5.79%), fixed until 31st December 2010.

Customers can borrow up to 75% of a property’s value and the maximum loan size is £250,000; there is a 10% overpayment facility and the mortgage carries £599 arrangement fee.

For those needing to borrow up to £1 million, the lender has a two-year fix at 4.99% (previously 5.59%), also available until 31st December 2010 and also with a 10% overpayment facility.

Borrowers will need at least a 25% deposit and the arrangement fee is calculated as 1% of the loan.

Finally, a two-year fixed rate FeeSaver deal is available at 5.49% (previously 6.39%).

Customers can borrow up to £1 million on a maximum loan to value ratio of 75%.

A 10% overpayment facility is available; no product fee is charged and valuation is free.

Remortgage customers can choose between £200 cashback or a free mortgage transfer service.

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