Fixed-rate deals being withdrawn

MANY of the fixed-rate mortgages are being withdrawn, and in some cases are being replaced by higher rates.

The Leeds withdrew its five-year mortgage at 7.95 per cent yesterday. There is no replacement lined up, although a one-year 6.75 per cent fixed for first-time buyers is still available, as is the 11.25 per cent mortgage fixed for the life of the loan - up to 25 years.

Woolwich has withdrawn its two-year mortgage at 7.45 per cent and substituted a three-year mortgage at 7.99 per cent. 'Frankly I think that's a better deal,' said Ian Darby of the mortgage brokers John Charcol.

Barclays Bank has increased its five-year fixed rate from 8.50 per cent to 8.75 per cent. The bank believes that interest rates have reached their low point. The arrangement fee of pounds 250 will be waived if borrowers take out an endowment or pension policy with Barclays.

According to Ian Darby the rises in rates could be temporary, caused by lenders wanting to square off their positions in the money markets before Christmas.

Some still believe that a further cut in base rates will come about in the new year, although any cuts might not be reflected in longer- term fixed rates as expectations are still for a gentle rise in rates over the medium term.

Yorkshire Building Society has launched its lowest ever capped (6.99 per cent) and fixed-rate (6.5 per cent) mortgages. Both will last until 1 February 1994. Both have a pounds 199 arrangement fee.

----------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------- Savings Type Account Term *0% *25% *40% Min pounds GIB Laurentian Life 5 years 7.00 7.00 5.95 50,000 B Soc Cheltenham & Gloucester Instant 10.00 7.50 6.00 25,000 Tessa National Counties BS 5 years 9.60 9.60 9.60 3,000 ----------------------------------------------------------------- *Compounded annual rate except for GIB (guaranteed income bond) Source: Chase De Vere 071-404 5766 -----------------------------------------------------------------

----------------------------------------------------------------- Mortgages ----------------------------------------------------------------- Type Source Deal Variable Halifax 7.80% on loans over pounds 100,000 Fixed Birmingham Midshires 7.99% until 1/1/98, fee pounds 295 Capped Woolwich 7.25% for 2 yrs, 1st time buyers only ----------------------------------------------------------------- Source: John Charcol 071-589 2626 -----------------------------------------------------------------