Alliance & Leicester two-year fixed rate mortgage launched

Alliance & Leicester is launching its improved two-year fixed rate mortgage from today.

Features of the deal include a 4.19 per cent fixed rate until December 31st 2007, and the Bank of England (BoE) base rate plus 0.75 per cent for the duration of the mortgage after this date.

The Alliance & Leicester two-year fixed rate mortgage also allows customers 95 per cent loan to value (LTV) as well as a ten per cent overpayment facility.

Stephen Leonard, director of mortgages at Alliance & Leicester said: "Our two year fixed rate mortgage is market-leading at a rate of just 4.19 per cent.

"This deal is ideal for those borrowers who are coming towards the end of an existing low fixed rate deal and want to lock into another low rate."

However, there is a three per cent charge for the outstanding balance should the mortgage be redeemed before December 31st 2007.