Rate cut held but fixes fall

Contrary to expectations, interest rates stayed on hold again this week, so we'll have to wait a little longer to see if we are going to get a pre-Christmas mortgage rate cut.

In the meantime, homebuyers and remortgagers looking for a decent home loan deal, have plenty to choose from. If you want the certainty of knowing exactly what your monthly mortgage payments are, or you're on a tight budget, a fixed rate mortgage could be the thing to go for. Bath-based broker, London & Country, has just launched a "market-leading" fixed rate deal with no redemption penalties at any time. Funded by Newcastle building society, the rate is 3.85% to February 2005. Arrangement fee is £295 (£395 for loans above £250,000). Minimum deposit of 10% and there is no broker fee.

For those keen to benefit from any future rate cuts, broker Savills Private Finance, based in London, is offering a deal with a discount of 2.40% off the standard rate for two years, giving a current pay rate of 3.55%. Minimum deposit is 5% no extended redemption penalties but a lender fee of £499. As there is still a strong likelihood of a rate cut in the near future, those on base rate trackers may yet have cause for celebration, says London-based broker Charcol. Its pick of the deals include Yorkshire building society's base rate minus 0.35% (currently 3.65%) for two years, minimum deposit 5%; and a Charcol exclusive - base rate minus 0.30% (3.70%) for two years, minimum deposit 25%, no redemption penalties.