Northern Rock fixes good rate for four years

LIKE the savings market, the mortgage market has made a quiet start to 1993. Northern Rock, however, has launched a competitive four-year fixed rate, pegged at 8.25 per cent until the end of 1996. There is a pounds 250 arrangement fee and a requirement for the borrower to take out buildings and contents insurance with Northern Rock. The fixed rate is available on loans between pounds 20,000 and pounds 150,000, but cannot be used for repayment mortgages. The next most competitive four-year rate is the 8.49 per cent fixed rate being offered by Birmingham Midshires Building Society.

Abbey National has just put up its fixed rates. The 7.2 per cent rate fixed for two years has been replaced by a rate of 7.85 per cent. Abbey is still offering 6.99 per cent, but fixed only until the end of February 1994. Yorkshire Building Society has launched a 9.25 per cent rate, fixed until 1 January 2000.

Scarborough Building Society is offering a six-month, 2 percentage point discount on its variable-rate mortgage, bringing its rate down to 6.59 per cent for new borrowers. For the next four and a half years, borrowers will get a discount of 0.5 points.