Rock solid - for a few days at least

Last week Jobs & Money highlighted a 3.99% two-year fixed rate mortgage from Northern Rock. It was a good deal - so good that it "sold out" in just a few days.

Northern Rock, which refuses to disclose how many loans it arranged at the 3.99% level, has now pushed the rate up to 4.49%.

The rate reflects increasing sentiment that the Bank of England is likely to raise interest rates later this year.

A spokeswoman for Northern Rock says: "All fixed rates are of a limited nature and this was a particularly good rate so it was very popular. When it had gone, the rates changed."

The 3.99% deal was only available for people able to put down a 25% deposit. But its 4.29% rate for fixed loans of up to 90% over two year has also risen to 4.59%.

Ray Boulger of mortgage brokers, Charcol, says: "Northern Rock's rates are still quite competitive and they are flexible so if this is a factor that's important. But there are still some good deals to be had."

Other possiblilities for those trying to find a two-year fixed deal without extended penalties includes a 4.25% deal from GMAC - a subsidiary of General Motors - recommended by Savills Private Finance.

The rate applies to loans up to 75% of the property's value. For loans up to 95% the rate is 4.45%, and all are fixed until March 1 2004. As with Northern Rock's deals, interest is charged daily and it has a £395 arrangement fee.

Savills is also recommending a 4.99% fixed three-year deal from the Portman building society for borrowers looking for slightly longer-term rate security, but they must have 25% or more as a deposit.