Rate is guaranteed until next century

A FIVE-YEAR capped repayment mortgage has been launched by First Mortgage Securities. Borrowers start paying at 7.95 per cent and the variable rate will not rise above 9.99 per cent before 1 January 2000.

Borrowers who want to take the cap on an endowment or interest-only loan pay an extra 0.3 per cent unless the loan has run for at least five years. The application fee is pounds 295 up to pounds 250,000, plus pounds 1 per pounds 1,000 for more expensive properties.

Royal Bank of Scotland has a 'continuous cashback' mortgage which refunds the equivalent of the first regular repayment up to a maximum of pounds 1,000 every year throughout the life of the loan.