The deals to look for

For those keen to benefit from the further cuts in interest rates that some experts anticipate, a discounted rate loan may be the best bet.

Ray Boulger at London-based mortgage broker Charcol likes Alliance & Leicester's discounted deal giving 1.9% off the standard variable rate for two years, which means a current payment rate of 4.84%. For remortgagers it comes with a free valuation and £250 cashback, there's no arrangement fee and no early redemption penalties at any time.

For those on tight budgets or who are worried about interest rates shooting up in future, a fixed-rate mortgage may be the answer.

One of the cheapest longer-term fixes is offered by Yorkshire building society where the payment rate is fixed at 5.69% for five years. There are no freebies and there is a £295 fee to pay. There are redemption penalties for the five years but not beyond. Maximum loan to value is 75%.

Alternatively Charcol has an exclusive deal where what you pay is capped at 5.29% until April 2004. There is a £300 fee to pay but for those remortgaging with at least 25% equity in their property, a free valuation and free basic legal work are thrown in. There are redemption penalties within the capped rate period only and after April 2004 you pay bank base rate plus 1% for the lifetime of the loan. The deal is funded by Portman building society.

Bath-based mortgage broker London & Country is offering an exclusive remortgage deal with a 1.9% discount for two years, giving a current pay rate of 4.84%. The deal is the result of a tie-up with a major bank. There is no broker fee to pay, no arrangement fee, and a free valuation and free basic legal work are thrown in. There are no early redemption penalties at any time.

Portman offers one of the most competitive fixed deals - 5.39% fixed until October 2004. For those remortgaging with a deposit of 25%-plus it offers a free valuation and free basic legal work. There is a £300 fee and redemption penalties within the three-year period only.

London & Country says the Yorkshire offers a fixed-rate deal where the rate is slightly less competitive than this - 5.59% for two years - but there is no fee to pay and you get a refund on the valuation plus £250 cashback. There are redemption penalties only during the two-year period.

If you fancy something a little different, Skipton building society is offering "the Manhattan mortgage," a five-year tracker home loan linked to the three-month US dollar Libor rate - the rate UK banks offer to lend dollars to other UK banks (Libor stands for London inter-bank offered rate). Mr Boulger points out that someone borrowing up to 85% would pay this rate (currently 3.9%) plus 1.14%, giving a pay rate of just 5.04%. For more details go to www.skipton.co.uk and hit the section marked "press releases".