A lack of interest

THE FALL in interest rates this week of just 0.25 of a percentage point caused barely a flutter in mortgage rates.

TSB dropped its variable rates by 0.19 per cent to 7.45 per cent and Kleinwort Benson cut the rate on its mortgage management rate from 7.49 to 7.25 per cent. Other lenders stayed put.

New offers and discounts include pounds 1,000 cash from Newcastle Building Society or free accident, sickness and unemployment insurance with a 7.6 per cent loan fixed until 2001. Fee is pounds 250 (pounds 350 for remortgages), with a six-month redemption penalty.

John Charcol has a 5 per cent discount until January for those borrowing up to 75 per cent of the value of the property, which brings the rate down to 2.75 per cent.