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New buy-to-let lender on the block

Alliance & Leicester in near to launching sub-prime, near-prime, self-certification and buy-to-let mortgages through intermediaries, the bank announced yesterday.

The assets originated will be sold to Lehman Brothers under an agreement. The bank confirmed this in its 2006 Pre-Close announcement to the City yesterday.

Mehrdad Yousefi, head of intermediary mortgages said: "We are very excited to be nearing our launch into specialist markets where we aim to bring additional choice and competition with market-leading mortgages."

"We are delighted that we will be able to provide a wider range of deals to suit the changing needs of borrowers. By working closely with mortgage intermediaries we can offer a 'one stop shop' for all clients' needs."

Alliance & Leicester will also continue to focus on the prime residential mortgage market building on its success which is evident in a strong set of results in the Pre-Close where gross mortgage lending was up to £3.2 billion with net lending up to £1.4 billion for the first quarter of 2006.

A&L has traditionally been one of the most cautious mortgage lenders, but said it would enter the market "in a prudent and responsible manner", targeting those with sizeable deposits.