Good deals despite fright

Good deals despite fright

Bank of England governor Mervyn King will have scared many home buyers with his warning that house prices could be heading for a fall and people should be wary of taking the plunge into buying property.

But those not put off by his alleged scaremongering will find there are still some fairly good mortgage deals on offer - but don't expect them to hang around for long.

Nationwide building society was among those repricing its fixed rate mortgage deals this week.

It's still possible to get a below-5 per cent two-year fix. Britannia building society is offering a loan of 4.99 per cent fixed for 24 months. It's available up to 95 per cent loan-to-value (ie, minimum deposit of just 5per cent) and open to home buyers and remortgagers.

There are early redemption penalties within the two years only, and a £299 arrangement fee to pay.

That's a best buy, says mortgage broker Savills Private Finance, and Britannia is also offering a table-topping five-year fixed rate: 5.49 per cent .

But the minimum deposit for this loan is 25 per cent.

Guardian Unlimited © Guardian Newspapers Limited 2003

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