Choice of discount or a fix

NORWICH and Peterborough Building Society has two mortgage schemes giving borrowers the choice between a discount or a similar-sized fix on their loans.

The discounted scheme offers 3 per cent off the society's current 7.89 per cent variable rate until 1 January 1996, with no extra fees. The fix is at 4.99 per cent to the same date. A pounds 125 fee is charged.

Any choice depends on borrowers' expectations whether mortgage rates will rise significantly over that period. If they do, a fix is cheaper.

Bradford & Bingley has improved its range of discounted mortgages, with 4.8 per cent off the variable rate of 7.74 per cent for 12 months on loans up to 75 per cent of value.

National Counties Building Society offers a mortgage fixed at 7.25 per cent until October 1997, with no buildings or contents insurance required. There is a pounds 275 reservation fee.