Mortgage offers that can save you a fortune

NatWest is offering a new deal for homeowners who want to switch mortgages for a better rate without moving property. There are five different remortgage deals on offer, including a two-year fix at 7.15%, a two-year discount of 1.9% giving a current rate of 5.84%, and a five-year discount of 1.2%, taking the current rate to 6.54%. The bank will pay the valuation fee (generally around £200) and the solicitors fees (around £150). David Evans, head of mortgage products at the bank, says: "Homeowners are often surprised by the substantial savings to be made by switching their mortgage, and yet are often reluctant to change because of the hassle and costs involved." He adds that it can take as little as four weeks for the remortgage process to go through.

Hinckley and Rugby Building Society is offering a mortgage at 7.5% which pays a cashback and gives free accident, sickness and unemployment insurance for six months. The product is available for loans of up to 75% of the property value.

Online mortgage broker Creditweb is launching two products which cannot be bought directly from the banks or building societies. The first, offered by Birmingham Midshires, is a three- year fix at 5.99% with a maximum loan to value of 95% and the second, also a three-year fixed rate with 95% loan to value, this time at 4.95% is offered by mortgage lender Verso. Creditweb is at www.creditweb.com.

For those looking to buy a property in Spain, Norwich and Peterborough has launched a fixed-rate mortgage specifically for people buying on the Costa del Sol. The loan is fixed at 6.24% for two years, after which it reverts to the N&P Spanish home loans rate, currently 8%. The money is paid in sterling and repayment must also be paid in pounds. The only problem is the low loan-to-value ratio, which is just 65%.

A spokesman for the society says: "Up to now we have provided some home loans at a standard variable rate in Spain, but demand has been growing for a fixed-rate scheme, similar to those customers can obtain in the UK. People buying abroad like the idea of getting their mortgage from a familiar, trusted British mutual building society."