Cash-back improves

AS FIXED rates rise, mortgage lenders are improving the cash-back offers on variable rate loans.

Bradford & Bingley will give borrowers pounds 1,000 when they take out a full-rate 7.74 per cent variable loan. The cash for those taking the discounted 6.99 per cent loan has increased from pounds 300 to pounds 500.

Bristol & West is offering half-price mortgages - 3.94 per cent - for the first year. Life cover must be taken out with the society, plus buildings and contents insurance.

Norwich & Peterborough has a 1.75 per cent discount on its variable rate to bring it to 6.14 per cent until July 1995.

Chelsea Building Society has a loan with no payments at all during 1994. If the loan is repaid before the end of 1997, borrowers have to pay three months' interest, plus all the unpaid interest from 1994.

----------------------------------------------------------------- Savings ----------------------------------------------------------------- Type Account Term 0% 25% 40% Min GIB General Portfolio 4 years 6.1 6.1 5.19 pounds 50,000 B Soc Northern Rock Instant 6.75 5.06 4.05 pounds 25,000 Tessa Hinkley & Rugby 5 years 7.60 7.60 7.60 pounds 3,000 Compounded annual rate except for GIB (guaranteed income bond) ----------------------------------------------------------------- Source: Chase De Vere 071-404 5766 -----------------------------------------------------------------

----------------------------------------------------------------- Mortgages ----------------------------------------------------------------- Type Source Deal Variable Northern Rock* 2.99% discounted rate on 90% loans Fixed First Mortgage Securities 5.75% 3 years on 75% loans Capped First Mortgage Securities 5.75% 3 years on 75% loans *Arrangement fee of pounds 150. Household insurance through Northern Rock. ----------------------------------------------------------------- Source: John Charcol 071-611 7000 -----------------------------------------------------------------