Nottingham's lowest fixed-rate deal to date

CHELTENHAM & Gloucester Building Society's decision to raise its basic rate to 10.99 per cent underlines the uncertainty over present rates.

But Nottingham Building Society is still offering loans fixed at 8.9 per cent, its lowest fixed deal yet, representing a saving of 1.8 per cent on the society's basic mortgage rate of 10.7 per cent.

The fixed-rate period ends in August 1993, so borrowers need to move quickly to make the most of the society's offer. The mortgage can be transferred to a new property if the borrower should decide to move house within a year.

The arrangement fee is pounds 75 and borrowers must take out the Nottingham's buildings and contents insurance.

Cheltenham & Gloucester is still marketing its 9.6 per cent fixed-rate deal, which runs for a full two years from when the loan is taken out.