Money News
Royal Bank of Scotland is cutting mortgage rates by up to 0.30%, with the prices of all new fixed and tracker mortgages lowered by at least 0.10%. These deals are available through RBS and NatWest branches.
At the same time, RBS is offering to help borrowers saving for the deposit on their first home through the First Home Saver Account - this deal providing a tax-free cashback of up to £5,000 upon completion of a RBS mortgage (worth the equivalent of £8,333 for a higher rate tax payer).
The account can be opened with £100 and asks customers to make at least one regular monthly payment, minimum £50, to the account by standing order. Customers however can make additional deposits as often as they wish.
Savers can earn up to 3.75% gross/AER. In combination with the cash bonus of up to £5,000 upon completion of their RBS mortgage, this is equivalent to getting over 20% AER on their savings, claims the bank.
At £500+ a 2.40% rate is payable, then 2.65% (£5,000+), then 3.25% (£10,000+), 3.50% (£25,000+) and 3.75% (£50,000+).
Three free withdrawals are allowed per quarter - further withdrawals being charged at £1.50 each.
Customers must claim their bonus within three months of an RBS mortgage drawing down.
30 April 2008 © Moneyextra.com
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