Home loan lures

NEWCASTLE Building Society is now offering 6 per cent off its current variable mortgage rate of 8.54 per cent until the end of May next year, plus a cash-back of 1 per cent of the advance. But borrowers will have to repay the incentives if they redeem the mortgage within five years.

Newcastle is also offering a 1 per cent cash-back on a five-year "cap and collar" mortgage, where the interest rate is guaranteed not to go above 9.99 per cent or below 8 per cent over the next five years.

Savers are offered a three-year investment account guaranteeing 8 per cent gross on a minimum of £2,000, 8.3 per cent on £5,000, and 8.5 on £50,000.