It's raining mortgage deals

Expectations of interest rate cuts have encouraged lenders to offer a flurry of new mortgage deals.

Two-year fixes have fallen to new lows, with Savills Private Finance and Skipton Building Society offering loans at 4.29 per cent. The Skipton will lend up to 95 per cent of the property's value (the loan is mortgage indemnity guarantee free up to 90 per cent) and has an application fee of £399. The loan is available only from the Skipton via branches or by calling 08457 171777.

The Savills mortgage (0870 900 7762), which is lent by the Halifax, has a more expensive fee of £599 and is available for up to 90 per cent of the property's value. Melanie Bien, associate director at Savills Private Finance, says: 'Although 4.29 per cent isn't as cheap as two-year fixes were in July 2003, they are moving in the right direction - good news for those about to remortgage. If you need the certainty of fixed monthly payments, you can't go wrong with one of these.'

Independent mortgage broker John Charcol is launching a three-year tracker, pegged at 4.69 per cent, funded by Scarborough Building Society, charging set-up fees of £524 and no early repayment fees but an exit charge of £245. Details on 0800 718191 or www.johncharcol.co.uk.

Yorkshire Building Society is funding a new offset mortgage at Buildstore, the self-build and renovation specialist. The three-year discounted mortgage stands at 4.74 per cent. Borrowers draw down only the amount they need as the building progresses, leaving the rest to earn interest in a Yorkshire Accord account. That interest is set against the mortgage cost. Details via www.buildstore.co.uk.

Standard Life (0845 845 8450; www.freestylemortgages.com) is offering a new mortgage that reduces the rate four times over the first five years - but Simon Tyler of Chase De Vere Mortgage Management says: 'Even after the reductions in the first five years the rate only falls to 5.4 per cent. I see no reason to recommend this mortgage.'