Fixed rates have appeal

WITH rates just below the prevailing variable rates, three-year fixed-rate mortgages are becoming very popular. The TSB is offering a 7.75 per cent fix on 95 per cent mortgages for an arrangement fee of pounds 250. The Cardiff-based Principality Building Society is offering a three-year fix of 7.70 per cent for 90 per cent borrowers and a 7.90 per cent rate for 95 per cent borrowers. Cheltenham & Gloucester is offering a new two-year 7.5 per cent fix and a five-year mortgage pegged at 8.5 per cent - both for an arrangement fee of pounds 250 and both on 90 per cent loans. Portman is offering a 6.49 per cent, two-year fix on 75 per cent advances (or a 6.99 per cent fix for 90 per cent loans over two years).