Fix a deal as home loan rates fall

Average new mortgage rates are continuing to fall, with the typical new variable home loan rate now 5.05% compared with 6.14% a year ago, according to new figures this week.

Meanwhile a borrower taking out a new fixed-rate deal is typically paying 5.82% -down from an average of 6.3% 12 months ago, says the Council of Mortgage Lenders, whose data showed that mortgage lending fell 13% last month.

But the figures reveal that remortgage activity remained strong. Mortgage broker Charcol says that with home loan rates at their lowest levels for more than 40 years, it expects remortgaging to re main popular, and anticipates strong demand for some of the attractive fixed rates now available. It is offering a deal fixed at 4.79% until January 1, 2005.

Funded by Bradford & Bingley, it is available for loans up to 85% of the property's value, there are early redemption penalties until January 2005 but not afterwards, and there is no arrangement fee for loans up to £500,000 (for loans above this amount there is a £500 fee). There is a £49 booking fee.