Fixed-rate home loans fall again

Fixed-rate mortgages continue to get cheaper, with a number of lenders cutting their rates. Portman building society cut its five-year fixed rate from 4.6 to 4.5 per cent, Alliance & Leicester dropped its two-year fix from 4.59 to 4.44 per cent and five-year fix from 4.64 to 4.59, while the Yorkshire building society is cutting its two-year fix from 4.69 to 4.44 from Wednesday.

Those in the middle of an application could also benefit, said David Hollingworth of brokers London & Country (0800 373300). Someone applying for a £100,000 interest-only two-year fixed rate Nationwide mortgage (5.19 per cent in April) could save £1,011 over two years by reapplying at its current rate of 4.79. This includes a £389 booking fee.