Fixed-rate deals getting cheaper

Interest rates stayed steady this month but fixed-rate mortgage deals are continuing to come down in price. There's never been a better time to fix your monthly mortgage payments, according to broker Charcol.

It says borrowers have access to the lowest five, seven and ten-year fixed rates in living memory. Yorkshire building society and Northern Rock are both offering two-year fixes at 3.99% until December 2004. Minimum deposit is 5% and 10% respectively and both deals come with a fee. Bank of Ireland is offering a rate of 4.19% fixed for three years (until January 2006) - you can borrow up to 95% of the property's value and there's a £299 fee, according to Savills Private Finance.

On five-year fixes, Charcol has an exclusive deal fixed at 4.79% until September 2007. Maximum loan to value is 95% and the fee is £399. Bank of Ireland has a slightly cheaper rate (4.69%) for loans of £100,000-plus. And Nationwide has a five-year fix at 4.84% for those who can manage a deposit of 25%-plus, with a £150 fee. All the above deals have early redemption penalties.