The Alliance & Leicester group announced earlier this week that it is reducing the deposit size required in order to qualify for some of its best mortgage deals and interest rates.

The loan to value ratio is being increased from 60 per cent to 70 per cent for its tracker rate mortgages and the loan to value on the best fixed rate mortgages is increasing from 65 per cent to 70 per cent.

The Santander-owned Abbey made a similar announcement last week, which is good news for mortgage advisors and those looking at CeMAP training as this shows that the competition in the mortgage market is slowly starting to increase again.

Nici Audhlam-Gardiner, Alliance & Leicester director of mortgages, said:

“At Alliance & Leicester, we are committed to offering our customers the best possible deals. To help those looking to purchase or move home, we have increased the LTVs on all our trackers that were previously available at 60% and all our fixed-rate mortgages that were previously available at 65% LTV to 70% LTV, enabling more borrowers to benefit from our most competitive rates on offer.”

The change actually took effect yesterday and the most competitive mortgage deals with the Alliance & Leicester for those with a 70 per cent loan to value are now a two year fixed rate deal at 2.99 per cent or a two year tracker for 3.29 per cent. Arrangement fees are still required for both mortgage deals, set at 2 per cent and 1 per cent respectively.

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