The mortgage deal is a two year tracker mortgage with a fee of £499 and loan to value (LTV) of 75 per cent; it is available to both homebuyers and remortgagers borrowing up to £250,000.

Commenting, Nici Audlam-Gardiner, director of Alliance & Leicester mortgages, said: “We remain committed to offering borrowers highly competitive deals whether remortgaging or buying a new home.

“Abbey mortgage research shows that for those looking to remortgage, a third are looking for a tracker and of those, over half will choose a two year tracker.

“The two year tracker is second in popularity only to a two year fix,” she added.

Meanwhile, recent figures from mortgage experts John Charcol revealed that 80 per cent of mortgage applicants through them are choosing a fixed rate mortgage deal as interest rates are expected to rise in the near future.

The mortgage market has been at the crux of the economic crisis, and whether recent measures announced by the Government will relieve the market stresses remains to be seen, as first time buyers continue to be frozen out of the market.

Get mortgage quotes and advice »

© Fair Investment Company Ltd