Money Briefly: Cheap loans have strings attached

WOOLWICH Building Society is offering fixed-rate mortgages at 4.99 per cent on some of its repossessed properties - but there are strings attached.

The property must be leasehold and be on sale through a Woolwich Property Services estate agent. It must have been on the market for at least six months. Borrowers must pay a pounds 150 arrangement fee on the loan and they must back the loan with an endowment policy arranged through the society. They must also buy Woolwich household insurance. Borrowers receive free unemployment insurance. Inquiries should be made to Woolwich estate agencies.

The society is also launching a three-year fixed-rate loan at 7.99 per cent. This must be backed by an endowment or pension policy.