MoneyExpert: New Mortgage Range Ahead Of Base Rate Review

Alliance & Leicester has announced changes to its range of specialist mortgages to commence on November 9th, the same day that the Bank of England’s interest rate is reviewed.

There are two buy-to-let mortgages offered, one being a two-year fixed-rate product with a rate of 5.29 per cent and the other a base-rate tracker.

The tracker product offers 0.15 per cent plus the base rate, which is currently 4.75 per cent but is widely expected to be raised by the Bank of England’s monetary policy committee this month.

A fixed-rate self-certification product is also available, with a rate of 5.25 per cent for two years. An arrangement fee of £999 is applicable although free valuation of the property and £250 cashback for re-mortgagers comes as standard.

“We’ve maintained our tracker deals and our fixed rates have only increased marginally to reflect swap rate changes,” said Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester.

“Our rates are still highly competitive with some great extras.”

Each product includes an early repayment charge (ERC) of either five or six per cent. An ERC is a penalty charged by the lender if the loan is repaid by the borrower within a specified period.

This article: © Moneyexpert Ltd.



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