Fixed rates are moving up

RATES on fixed-rate mortgages, particularly in the five-year bracket, have seen a significant rise over the past few days. Legal & General Mortgage Services' deal stands out and, although the cheapest rate is available to people who have deposits of at least 25 per cent to put down on their properties, there is also a rate of 7.75 per cent on loans of up to 90 per cent of a property's value. Another competitive fix is the two-year offer from Mercantile Building Society in North Shields, pegged at 6.5 per cent.

On variable rates, Northern Rock is offering a 3.01 per cent discount to 4.98 per cent on 75 per cent loans until 1 June next year. Borrowers of up to 90 per cent can get a 2.01 per cent discount, bringing the rate to 5.98 per cent, and 95 per cent borrowers get 0.75 per cent, giving a 7.24 per cent rate.