A new range of Alliance and Leicester mortgage products has just been announced with flexibility built in to suit different customer needs.
There are different fixed term periods available, fee or no fee mortgages and also a base rate tracker. Some excellent rates are available, with a maximum loan of 75 percent of the property value enabling the Alliance and Leicester to offer these rates. One of the most popular mortgage options is expected to be the 2 year fixed rate with a 5.99 percent interest rate.
One of the Alliance and Leicester tracker mortgages that customers will find interesting is currently quoting a rate of 5.89 percent for the first 2 years, this is base rate plus 0.89 percent. After 2 years the tracker works at base plus 1.49 percent.
For the third month in a row the Abbey National Mortgage Index has shown a rise in the appeal of five year fixed rate mortgages to consumers.
From the survey carried out by the Abbey National there has been a 6 percent increase in those ready to go for a five year fixed rate mortgage if they were remortgaging tomorrow. The figure stands at 30 percent this month, compared with 24 percent and 12 percent in the two months previously.
A lot of the interest in these mortgages will be coming from those with existing fixed rate deals that are set to expire say the Abbey National. Having already enjoyed the security of a fixed rate mortgage these customers will take another one given the opportunity.
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Following the trend in the market Northern Rock has announced a cut in its fixed rate mortgages, dropping them down to 6.43 percent from 7 percent.
Anyone looking at getting a fixed rate mortgage will appreciate the reduction but should bear in mind there is an arrangement fee on the Northern Rock products of GBP1,495. As stated other mortgage providers have also been reducing their rates so it is sensible to check the new offers available to find the one best suited to specific circumstances.
Potential home buyers still need a big deposit, this situation unlikely to change for some time yet say Northern Rock. The average deposit needed is around 20 percent currently, meaning first time buyers especially are finding it very difficult to get onto the property ladder.
