Alliance & Leicester launches new product

Alliance & Leicester has announced the launch of a new tracker mortgage product in the UK.

The lender''s new two-year base rate tracker has a starting rate of 5.98 per cent, while customers will also be able to borrow up to 75 per cent of the property value.

According to the company, the product includes an arrangement fee of £999, as well as flexible features to allow borrowers the chance to make overpayments or take payment holidays.

Richard Taylor, head of mortgage products at Alliance & Leicester, said the introduction of the new mortgage demonstrates the lender''s "commitment" to the market.

"With both flexible features and a headline rate below six per cent, it represents a great deal for both new and existing customers - particularly as fixed rate pricing continues to rise across the market," he added.

Earlier this week, Abbey announced plans to reduce the fees on its range of flexible mortgages.

The lender has cut its fees by £1,000 to £1,499.

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