Alliance &Leicester launches new mortgage offer

Amanda Jarvis

October 8, 2002

The new mortgage is available from Monday, 7 October and offers customers:

Discounted Base Rate Tracker

Bank of England Base Rate minus 1.50% for 2 years, current rate 2.50% (5.2% APR)
Bank of England Base Rate plus 1.50% for the remaining term, current rate 5.50%
No arrangement fee
Customers can borrow up to 95% of the property value
Early repayment fee linked to the benefit the customer has received and reducing after year 2:
Year 1 – 1.5% of the loan
Year 2 – 3.0% of the loan
Year 3 – 2.4% of the loan
Year 4 – 1.8% of the loan
Year 5 – 1.2% of the loan
Year 6 – 0.6% of the loan
All customers receive a free basic valuation1
Remortgage customers also receive £250 cashback or can use Alliance & Leicester’s Mortgage Transfer Service2
First time buyers also receive £250 cashback or free conveyancing3

Paul Cooper, Head of Mortgages at Alliance & Leicester commented: “Alliance & Leicester’s new discounted base rate tracker mortgage is different from the other offers available within our current mortgage range. It provides customers with a very attractive discounted rate, which is currently the lowest rate we offer, and is followed by a lifetime base rate tracker. The early repayment fee period is linked to the benefit the customer receives and reduces after the second year. With an attractive incentive package also available to all customers, we believe that this offer will be very attractive to those who wish to save money initially to fund purchases and other expenses related to their new home.”

For further information on Alliance & Leicester mortgage offers, customers should visit their local Alliance & Leicester branch, call Mortgage Direct on 0845 303 3000 (8am – 8pm Monday to Friday and 9am – 5pm Saturday) or go on-line at www.alliance-leicester.co.uk

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