Mortgages

Phew! Mortgages are the one major area of personal finance where you've never had it so good.

Mortgage interest rates are currently at their lowest levels since the early 60s, and the ease of remortgaging has meant that few homeowners are missing out.

The only cloud on the horizon is the prospect of rising interest rates, with the money markets predicting a rise in base rates from 4% to around 5% by the end of the year, suggesting a rise in the Halifax variable rate from 5.75% to 6.75%.

But special deals abound, and homeowners can beat rate rises by taking out a capped mortgage. One deal this week from London & Country mortgage brokers (0800-953-0309) has an initial pay rate of 4.65% and is capped at 5.49% until August 1, 2004. Two-year fixed rates start at 4.75% at West Bromwich building society and 4.79% at Britannia. All these loans require a 5% deposit.