Nationwide caps it with 7.85% deal

Friday 26 March 1993 19:02 EST
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NATIONWIDE Building Society is offering a competitive 7.85 per cent three-year capped mortgage on 85 per cent advances for an arrangement fee of pounds 295. The redemption penalty is two months' interest during the capped period.

Legal & General three-year cap and collar mortgage is available for an arrangement fee of pounds 225. Borrowers pay 7.89 per cent with a 1 per cent discount until February. But the mortgage comes with the promise that rates will not rise above 9.99 per cent. But if interest rates fall dramatically, the rate will not drop below 5.99 per cent.

Northern Rock is one of several lenders to introduce new offers this week. Its two-year fixed rate is pegged at 6.25 per cent and the three-year fix is pegged at 6.75 per cent.

Cheltenham & Gloucester is launching a five-year mortgage fixed at 7.95 per cent.

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