Bank of Scotland says three times more customers have opted for fixed-rate mortgages in the past 12 months, so it is cutting short and medium-term rates by up to 0.52%. That means a three-year rate of 6.21% when borrowing up to 80% of value, 6.93% for up to 95% of value and a five-year rate of 6.64% for 95% loans.

A Royal Bank of Scotland survey reports 63% of homeowners would prefer a mortgage with a competitive interest rate and no penalty fee if they pay off their loan faster than expected, or move to another lender, rather than a mortgage with the ''best'' rates and redemption penalties.

The Royal is also offering a MasterCard with an interest rate of 12.9% APR until the end of the year for those who apply before the end of July. After this year the rate rises to 15.5% APR.

Scottish Amicable will launch a Guaranteed Peak Bond on June 1 which promises to lock in gains made over a six-year period. These cannot then be lost if the index falls. If there is a constant fall in stock market prices from the investment date, July 17, investors are guaranteed the return of the initial investment on December 10, 2004.

TSB Scotland this week launched a 6.49% five-year fixed rate mortgage and a 6.75% five-year capped mortgage, both with no tie-in period, and a 100% three-year mortgage fixed at 7.5% with no tie-in period for first-time buyers. All of them offer borrowers free basic valuations.