Alliance and Leicester have launched a new two year tracker mortgage which could offer be putting a good deal out there, among all the raises in fees and good deals which have been pulled from the market.

The two year tracker deal has an interest rate of 5.98 per cent which will remain at that rate for two years. The deal is highly flexible and allows customers to pay off more when they can and less when they want to.

After the two years is up, the interest rate will track to the Bank of England base rate plus 1.49 per cent. At this moment in time, the Bank of England base rate is five per cent.

If you pay back in regular payments, you can then borrow money back later if you need it.

Head of new mortgage products at Alliance and Leicester said of the deal that he believes it demonstrates Alliance & Leicester's commitment to the mortgage market."

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

The new offer is open to both new and existing customers. The deal was announced in the same week that Bradford & Bingley, First Direct and the Co-operative Bank all raised interest on their fixed-rate mortgages.