A better variable rate from C&G

CHELTENHAM & Gloucester has bettered its 8.05 per cent mortgage rate for loans of up to 80 per cent of valuation with a new variable rate of 7.05 per cent (9.3 per cent APR) for loans of up to pounds 60,000 and below 60 per cent of valuation. This includes a 2 per cent discount on C&G's basic rate for 12 months.

For homebuyers seeking a fixed rate, Halifax is offering 8.25 per cent until January 1997. There is a pounds 250 arrangement fee but no compulsory insurance. Redemption penalties are four months' interest until January 1994 and three months thereafter.

Midland Bank's 7.99 per cent rate is fixed for five years, and there is a pounds 250 fee. Existing endowment policies are acceptable but top-up policies must be taken out with Midland Life.

---------------------------------------------------------------------- SIX OF THE BEST ---------------------------------------------------------------------- Savings ---------------------------------------------------------------------- Type Account Term *0% *25% *40% Min GIB Liberty Life 3 years 7.35 7.35 6.25 pounds 50,000 B Soc Scarborough Instant 10.10 7.58 6.06 pounds 25,000 Tessa Allied Trust Bank 5 yrs 10.58 10.58 10.58 pounds 9,000 ---------------------------------------------------------------------- *Compounded annual rate except for GIB - guaranteed income bond Source: Chase De Vere 071-404 5766 ---------------------------------------------------------------------- Mortgages ---------------------------------------------------------------------- Type Source Deal Variable Chelt & Glouc 7.05% for loans under 60% of value Fixed Halifax 8.25% for 4.25 years pounds 250 fee Capped TSB 7.5% for 2yrs pounds 250 fee ---------------------------------------------------------------------- Source: John Charcol 071-589 2626 ----------------------------------------------------------------------