Discounts on offer to the Chelsea set

CHELSEA Building Society has two new discount mortgages without compulsory insurance or arrangement fees. For those with a deposit of 20 per cent there is a 4.9 per cent discount that brings payments to 2.74 per cent in the first year; for those with 10- 20 per cent for a deposit the discount is 4.4 per cent to bring the rate down to 3.24 per cent for the first year.

Alliance & Leicester offers a 4.69 per cent first-year discount for loans up to 70 per cent of value, 4.19 per cent at 70 to 90 per cent and 3.69 per cnt on 95 per cent loans. This brings the payment rate in the first year to 3.95 per cent.