Crucial questions every borrower should be asking

Does your lender calculate interest on a daily basis?

Halifax: No, but launching a range of mortgages with daily interest calculation in June.

Abbey National: A third of 30-plus mortgages currently on offer feature daily interest calculation, including its flexible mortgage.

Nationwide: No, but does offer daily interest calculation for overpayments.

Woolwich: On 10 of its 24 mortgage deals currently available, the Woolwich calculates interest daily but charges it monthly.

Northern Rock: Of 11 products currently available, only its flexible mortgage offers this.

NatWest: No.

Barclays: No, though its base rate tracker features monthly interest calculation.

Alliance & Leicester: No. However, it calculates interest monthly on its flexible mortgages.

Norwich & Peterborough Building Society: No. But, does allow borrowers to make part repayments which are credited the following month.

Standard Life Bank: Yes (it offers only one deal, the Freestyle flexible mortgage, launched in January 1999).

Do the loans carry extended redemption penalties, tying you in for perhaps several years after the fixed/capped period ends?

Halifax: No - axed them from new mortgage products last year. Says only a "very small percentage" of existing borrowers likely to be tied in by overhanging redemption penalties.

Abbey National: Axed them from new mortgage products in 1998. Some existing borrowers tied in by penalties.

Nationwide: Current range - no. No idea how many existing borrowers affected.

Woolwich: Yes, six of the 24 deals have overhanging penalties. Unable to say how many existing borrowers affected.

Northern Rock: Only one of the current deals has overhanging penalties, but the "overhang" is substantial (a two-year fixed rate with penalties for a total of six years).

NatWest: Current range, no.

Barclays: No - axed them more than six months ago. A "small minority" of existing borrowers likely to be affected.

Alliance & Leicester: Yes, three of the 10 deals on offer have overhanging penalties. Around 30% of home loans sold in 1999 involve extended redemption penalties.

Norwich & Peterborough: Current range, no. Some existing borrowers affected.

Standard Life Bank: The loan does have an overhanging penalty - the 6.65% standard variable rate is discounted by 0.89% for the first six months, with a penalty of three months' gross interest if you walk away in the first 12 months.

Do any of its loans track the base rate?

Halifax: Launched its first base rate tracker loans last summer. About 10 of the 30 loans currently on offer are trackers.

Abbey National: Only one, its flexible mortgage, launched in June 1999.

Nationwide: Only one, its base rate tracker, launched last year.

Woolwich: Nine of the 24 current deals do.

Northern Rock: Current range, no. Did offer a base rate tracker last year.

NatWest: Only one, its base rate tracker mortgage.

Barclays: Eight out of the 14 on offer do.

Alliance & Leicester: Four of the 10 deals on offer, including its base rate tracker, have rates linked "in full or in part" to the base rate.

Norwich & Peterborough: No.

Standard Life Bank: No.

Do any of its current deals involve the borrower having to take the lender's buildings/ contents insurance?

Halifax: Axed compulsory insurance about seven years ago, so only "a handful" of existing borrowers affected.

Abbey National: Axed compulsory insurance from core product range about 10 years ago, so very few of the existing borrowers affected.

Nationwide: No.

Woolwich: Axed compulsory insurance in March 1999. Says "small minority" of existing borrowers affected.

Northern Rock: Axed compulsory insurance in summer 1999. Unable to say how many existing borrowers affected.

NatWest: No. It has no figures for existing borrowers.

Barclays: No. Says "a small minority" of existing borrowers likely to be affected.

Alliance & Leicester: No. Only 2% of borrowers who took out loans in 1999 affected.

Norwich & Peterborough: Yes. It has 15 different deals, each available both with and without compulsory insurance (those without have less attractive rates).

Standard Life Bank: No.

Is there an arrangement fee? If so, how much?

Halifax: No arrangement fee on any of current deals. A "small percentage" of existing borrowers will have paid one.

Abbey National: Says "under 50%" of current range carry a booking fee (typically ?150). No figures on how many existing borrowers affected.

Nationwide: Of the 19 loans on offer, seven have a "reservation fee". Usually ?95 and applies to fixed and capped rate products. No figures on how many existing borrowers affected.

Woolwich: Of the 24 deals, 13 have an "application fee" (typically ?195).

Northern Rock: Nine of its 11 deals carry an arrangement fee varying from ?395-?495. Existing borrowers on fixed/discounted rate etc likely to have paid a fee.

NatWest: Says all 23 products will have an arrangement fee. Typically ?295, but for two of them (graduate mortgages) it is ?1.

Barclays: Three of its 14 deals carry an arrangement fee (typically ?295). Says majority of existing borrowers likely to have paid one.

Alliance & Leicester: Of the 10 loans on offer, five carry an arrangement fee (typically ?295).

Norwich & Peterborough: All the deals carry an arrangement fee (typically ?295) which is added to the account.

Standard Life Bank: No.