Fixed rates sent from Coventry

Falls in mortgage interest rates for first-time buyers continue in the wake of some big lenders' decision to cut the cost of borrowing.

Among the new offers is one from Coventry Building Society. Borrowers can opt for a three-year fixed-rate mortgage at 5.45 per cent for loans of up to 70 per cent of valuation. The rate climbs to 5.9 per cent for 95 per cent of valuation. There is an arrangement fee of pounds 225.

The society also has a new 3.99 per cent 15-month discount mortgage until 31 March 1995 for loans of up to 95 per cent of valuation with no arrangement fee.

Northern Rock offers a two-year fixed mortgage at 5.25 per cent until January 1996, 5.95 per cent until January 1997 and 6.3 per cent to January 1998.