Never better on fixed rates

If you're looking for a fixed rate mortgage, you've never had it so good, it was claimed this week. Halifax and Nationwide have both just unveiled their "lowest ever" fixed rate home loans.

Many home buyers, particularly those on tight budgets, are attracted to fixed rates because of the payment certainty they provide.

Halifax's three-year fixed rate deals now start at 3.89%. To get this rate you need to be able to stump up a deposit of at least 20% (if you can only manage a small deposit the rate is 4.09%). The three-year rates for remortgage customers are slightly higher, starting at 4.09%. Its five-year fixes now start at 3.99% for those homebuyers able to provide a 20%-plus deposit.

The mortgages have early redemption penalties within the fixed periods only plus there is a £199 arrangement fee. You can make overpayments.

Nationwide has two-year fixes from 3.59% (this requires a deposit of 25%-plus). For those who can manage a deposit of 10%-25% the rate is 3.69%, and it rises to 3.99% if you can only rustle up 5%-10%. Its three-year rates range from 3.89% (25%-plus deposit) to 4.29% (5%-10% deposit).

Nationwide's deals are available to home buyers, movers and remortgagers. All have a £185 reservation fee and again there are penalties within the fixed period but not after. You can overpay (up to £500 a month).