Lender announces new fee-free mortgage deals

Alliance & Leicester has unveiled new mortgage products for which there are no arrangement fees.

The lender has revealed it is to offer a three-year fixed-rate deal at 4.69 per cent, with a maximum borrowing amount of £550,000.

Four-year deals are also available at 4.79 per cent up to the same maximum amount.

Both products are available at these rates for both house purchases and remortgages, with maximum loan-to-values ratio of 75 per cent.

Head of mortgages at the bank Nici Audhlam-Gardiner said: "There are very few fee-free deals available at the moment and especially not ones with market-leading rates."

She added that the lender is also offering free valuations and all legal costs paid.

Growth in the mortgage market needs to be boosted by a continuation of the stamp duty holiday announced last September, head of mortgages at moneysupermarket.com Louise Cuming has argued.

She said that the move to raise the lowest threshold for the tax from £125,000 to £175,000 - a measure meant to last for one year - should be continued beyond this period.