Leeds deal is cheapest

LEEDS Building Society has launched a new five-year fixed mortgage at 7.45 per cent - the cheapest such deal on the market.

But borrowers have to pay an arrangement fee of pounds 250 and the offer will not cover more than 60 per cent of the property's value. The offer is aimed at people looking for the best remortgage deals.

Bank of Ireland Mortgages is offering a fixed or capped rate of 3.75 per cent until 1 January 1995. Borrowers must have a deposit of at least 25 per cent since the loan cannot be more than 75 per cent of property value. There is an arrangement fee of pounds 260 but this is payable on completion rather than at the outset and there is no compulsory insurance.

Redemption penalty is two months interest in the first two years and there are no compulsory insurances. There will a choice of a fixed or variable rate at the end of the fixed period.

Staffordshire Building Society has a 1.4 per cent discount until 31 January 1995 which brings the rate down to 6.59 per cent. Repayment, endowment or pension mortgages can be taken out and there is no arrangement fee.

National & Provincial is offering payment protection to over 125,000 existing mortgage customers. The redundancy, sickness and accident insurance can cover mortgage payments for up to two years. It costs pounds 7.20 for each pounds 100 of cover. Repayments on a pounds 40,000 loan would cost just over pounds 20 a month to insure.