New fixed-rate package from Abbey National

ABBEY National, Britain's second-largest mortgage lender, has launched a new fixed-rate mortgage. The package offers a 9.99 per cent rate fixed until November 1995, and Abbey National has set up a helpline on 0800 555100 to deal with customer queries.

Also new on the market is the Stroud and Swindon Fixed and Capped Rate Mortgage, which has a fixed rate of 9.5 per cent for the first year and a capped rate of 10 per cent for years two and three, giving borrowers security in the first three years of their mortgage. But Cheltenham and Gloucester is still the best buy among the fixed mortgages, offering rates of 9.6 per cent over two years.

Halifax's first-time buyers' package, offering a rate of 8.5 per cent on loans up to pounds 60,000, coming down to 8.3 per cent for borrowers of pounds 100,000 or more, still looks good.

Among the caps, Mortgage Services, part of Hypo Bank, has a deal at 9.99 per cent until 1997. The arrangement fee is a hefty pounds 250 plus 1 per cent of the advance - pounds 15,000 to pounds 500,000 - but there is no collar. And after the first year, when there is a three- month interest penalty, there is no charge for early redemption when one month's notice is given.

----------------------------------------------------------------- SIX OF THE BEST ---------------------------------------------------------------------- SAVINGS ---------------------------------------------------------------------- Type Account Term *0% *25% *40% Min ---------------------------------------------------------------------- GIB Aegon Life 1 year 8.6 8.6 7.31 50K B Soc Bristol & West Instant 10.45 7.84 6.27 2,000 Tessa Stroud & Swind'n BS 5 yrs 11.60. 11.60 11.60 100 ---------------------------------------------------------------------- *Compounded annual rate except for GIB - guaranteed income bond ---------------------------------------------------------------------- Source: Chase De Vere 071-404 5766

---------------------------------------------------------------------- Mortgages ---------------------------------------------------------------------- Type Source Deal ---------------------------------------------------------------------- Variable Halifax BS 8.5% inc 1st-time buyers' discount Fixed Cheltenham & Glouc BS 9.6% for two years Capped Mortgage Services 9.99% to Jun 1997 ---------------------------------------------------------------------- Source: John Charcol 071-589 2626 ----------------------------------------------------------------------