Fixed rates look good

Fixed rate mortgages look rather attractive now rates are on the move.

Northern Rock has a two-year fix at 5.99 per cent for loans up to 95 per cent with a £250 fee.

Prudential has a novel stepped rate that starts at 6.99 per cent, then rises in December to 8.5 per cent until Septemeber 1997.

The loan which has an overall APR of 8.8 per cent has an arrangement fee of £295. It can be for 95 per cent of property value for first-time buyers and movers, and 90 per cent for remortgages.

Woolwich Building Society has three new fixes - 6.49 per cent for two years for loans up to 80 per cent of value, or 6.99 per cent for loans up to 95 per cent. It also has a four-year fix for loans up to 95 per cent at 9.49 per cent.