Abbey and Alliance & Leicester cut mortgage rates

Abbey and Alliance & Leicester, both part of Spanish banking group Santander, have today launched a new deal available only to first time buyers, allowing them to borrow up to 90% of the property purchase price and secure a rate of 5.99%.

The product comes with a £495 fee, but includes a free valuation and £250 cashback on completion.

In addition, the banks’ 2-year purchase and remortgage trackers are reducing by up to 0.3% with rates now from 2.94 per cent for a 75 per cent LTV deal. The new products are available through both Abbey and Alliance & Leicester branches as well as via the telephone.

Other new products launched include a 2-year fix 75% loan to value (LTV) at 4.18% with a £995 fee.

Abbey and A&L’s range of ‘no booking fees’ deals for existing current account customers, are also still available. The new deals include a 90% LTV 3-year fix at 5.99% and a 2-year fix 75% LTV at 3.89%, both with no fees.

Nici Audhlam-Gardiner, Director of Mortgages at Abbey and Alliance & Leicester said:

“The latest reduction in rates is yet more good news for borrowers. With speculation that the Bank of England base rate might stay put for a while longer, trackers are back in favour and to help those borrowers looking for a tracker, we have reduced rates.”

It always pays to shop around to make sure you’re getting the best deal. If you would like to speak to a broker who can help you choose a mortgage to suit your needs, visit http://www.totallymoney.com/mortgages.