A&L trims rates for borrowers with high deposits

LONDON (Reuters) - Mortgage bank Alliance & Leicester has brought in lower rates for home loans where borrowers have a deposit of at least 25 percent, as it tries to lure less risky customers in the face of the credit crisis.

The bank ALLL.L, Britain's ninth-biggest mortgage lender, said customers can still borrow up to 90 percent of the property value, but under the new deals those borrowing up to 75 percent will benefit from lower costs.

A two-year fixed-rate mortgage, for example, will be offered at 5.99 percent for customers borrowing up to 75 percent, but rises to 6.49 percent for those above that.

Thousands of mortgage products have been withdrawn from the UK market in recent months and lenders have raised rates as a credit crunch hits funding costs, but they have also cut prices in some areas to lure attractive borrowers and to conquer market share as others retreat.