Variable rate loan discounts increased

NATIONWIDE has increased the discounts on variable rate mortgages. Those with a 40 per cent deposit get a discount of 4.59 per cent for a year. Borrowers with 5 to 10 per cent gain 3.75 per cent and those with at least a 5 per cent deposit get a cashback as well.

Northern Rock has computed the savings using discounts, cashbacks and free valuations on offer. For a first-time buyer taking a 95 per cent loan of pounds 30,000, the highest saving of pounds 1,507 comes from Alliance & Leicester and the lowest of pounds 359 from the Britannia. A next-time buyer taking a 75 per cent loan of pounds 60,000 would save pounds 3,455 with Northern Rock, pounds 2,875 with Nationwide and pounds 2,815 with the Leeds, but just pounds 1,785 with the Britannia.

Northern Rock, Woolwich and Leeds score best for 80 per cent remortgages of pounds 50,000.