Fixed rates drifting higher

Friday 19 August 1994 23:02 BST
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FIXED rates are drifting higher. Chelsea Building Society has withdrawn its 5.1 per cent fix until January 1996 and replaced it with a new fixed rate fix of 5.15 per cent until April 1996.

There is no compulsory insurance. There is a pounds 95 fee. A redemption penalty will apply if the mortgage is repaid within five years.

National & Provincial Building Society still has a five-year fix (to August 1999) at 8.35 per cent for loans up to 90 per cent. Alliance & Leicester Building Society has just launched a new five-year fix at 8.69 per cent.

Abbey National has relaunched its discounts on variable rate loans to give borowers more choice. Those with a 5 per cent deposit can choose between paying 3.85 per cent until November 1995, 5.69 per cent until November 1996 or 6.29 per cent until November 1997. There are larger discounts for those with larger deposits.

For instane, a borrower with a 40 per cent discount can choose between paying 2.99, 5.19 and 5.95 per cent over the same three time spands.

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