Personal finance: BARGAIN BASEMENT

Cheltenham & Gloucester has raised its standard variable mortgage rate by 0.25 per cent to 8.7 per cent and the rate on its instant transfer account by the same amount to 7.25 per cent gross. It has also launched a new series of mortgages with rates fixed for two, three or five years. Contact branches.

Canada Life is launching a new income bond with a growth option. The bond guarantees the capital will be returned at the end of five years, and ensures a certain level of income in year one. Income in years two to five is linked to movements in interest base rates plus bonuses each year the FTSE 100 index increases by at least 5 per cent.Minimum investment is pounds 5,000. The bond is available through independent financial advisers.

John Charcol Insurance Brokers has reduced the rates on its accident, sickness and unemployment insurance products by almost 20 per cent. Benefits can be extended to include income protection. Call 0800 939393.

Nationwide Building Society will refund the legal fees for customers who are remortgaging with the society from other lenders. Contact branches.

Legal & General has increased the interest rates paid on its 60-day notice account and its instant access account. New rates range from 7.15 per cent to 7.75 per cent. Call 0500 111200.