Dropping the cap

THE NATIONAL & Provincial fix has no compulsory insurance. The redemption penalty is six months' interest.

The capped rate from Royal Bank of Scotland requires borrowers to start payments at 8.99 per cent. The rate will only drop as the variable rate falls and by the same amount, so there will always be a premium over the variable rate - but the rate will never rise above 8.99 per cent for the term of the cap.

Berry Birch and Noble has a three-year fix at 6.75 per cent for loans up to 85 per cent of value.

National Westminster Bank has a new range of discounts off its variable 7.74 per cent rate.

For instance, those with a 25 per cent discount borrowing pounds 60,000 to pounds 120,000 get a 4 per cent discount bringing the rate down to 3.74 per cent, while a borrower with a smaller deposit borrowing the same sum gets a 2.25 per cent discount.