Mortgages - Alliance and Leicester issues mortgages update - 20/12/2007

Alliance & Leicester has announced changes to some of its mortgage rates for the New Year.

The mortgage firm's SVR will be cut by 0.2 per cent for existing customers to 7.89 per cent.

By contrast, those on tracker mortgages will drop 0.25 per cent, reflecting the Bank of England's cut in interest rates last week.

Alliance & Leicester's policy on its SVRs is slightly more conservative than rival firms such as Abbey and Halifax - both of which passed on the Bank's full 0.25 per cent cut to customers.

Head of mortgages at Alliance & Leicester, Richard Taylor, said: "We continue to present a range of residential, Buy to Let and PlusMortgage products that offer great choice and value.

"Our fixed rate mortgages remain competitive for those who seek budgetary security and the base rate tracker remains an excellent option for those who hope to take further advantage of any potential rate cuts over the coming year."

The rate changes are to take effect on January 1st and 2nd, 2008.
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