Huge rise in number of cheap five-year fixed-rate mortgages
Mortgage provider Alliance Leicester is launching new tracker mortgage deals, which may suit some UK first-time buyers looking to find a mortgage.
The first mortgage deal, a two-year tracker mortgage, will track at 0.16 per cent below the Bank of England base rate, switching to just under one per cent above after the term.
Customers can borrow up to 95 per cent of the property value, with a maximum loan of �25,000.
The second mortgage is also a two-year tracker, with the same rate as the first mortgage, but buyers can borrow up to �999,999, with no product fee and free valuation.
However, both mortgages have an early repayment fee of three per cent if the mortgage is redeemed within the two-year period.
Stephen Leonard, director of mortgages at the company said: While fixed-rate mortgage rates are on the up, interest rates are historically low and stable and as a result base rate trackers are becoming more popular for many borrowers.
He added that the new mortgage deals are being launched in response to this demand, with rate cuts on the two-year base rate trackers.
Mortgage expert Moneysupermarket recently stated that tracker mortgages still offer good value in the UK as interest rates are not likely to rise significantly, which may be good news for many looking to find a mortgage in the UK.
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