Alliance & Leicester is offering a new best buy tracker mortgage from today. The deal has a current rate of just 2.95% and for two years is set at 2.45% above the Bank of England base interest rate.
This new tracker mortgage makes Alliance & Leicester currently the second best tracker currently available in the mortgages market, as First Direct has a lifetime tracker at 2.89% holding the top position at the moment.
The new A&L mortgage is available for those with a minimum of a 25% deposit on property up to £250,000 and comes with a £499 arrangement fee.
This new mortgage deal is a positive sign of relaxing the mortgage market slightly as the top five mortgages in the best buy tracker table are now all available at 75% loan to value. Previously since the onset of the credit crunch, all the mortgage lender’s best deals were reserved for those who had a minimum of a 40% deposit.
There is still some way to go as admittedly there are still just three mortgage deals available for those with only a 5% deposit and 74 deals for a 10% deposit but new figure released this week from the CML (Council of Mortgage Lenders) showed that home lending did increase during March to £11.5 billion, an increase of 16%, which is yet another positive sign for those looking to take their CeMAP training to get into the financial industry and mortgages in particular.