Abbey National has launched a summer offensive for an increased share of the household insurance and mortgage payment protection markets.

The lender has slashed up to 10% off its buildings and contents and Paymentcare MPPI products until October 3, 2000.

The full 10% discount is only available on contents insurance if the customer also takes out buildings insurance and applies for two years before dropping to 7.5% in the third year.

The MPPI product discount also lasts for two years.

But customers have to pay a completion fee to qualify for the discounts – £45 for each household product and £60 for MPPI.

A spokeswoman for Abbey National said the price cuts were designed to promote cross-selling of its mortgage loans.

She said it was not necessary for customers to buy its mortgages in order to qualify for the discounted products, which are underwritten by CGNU.