Fixed-term mortgage rates hit record low as cost falls again

The cost of fixed-rate mortgages has fallen again. Skipton Building Society has launched a two-year fix at 2.48 per cent. It is the cheapest short-term deal available, but there is a catch.

Borrowers need at least 40 per cent equity or deposit and there is a £195 application fee plus a £1,800 completion fee.

Meanwhile, Chelsea, part of Yorkshire Building Society, has launched the lowest ever five-year fixed rate in a generation at 3.39 per cent.
New low: The cost of fixed-rate mortgages has fallen again. Skipton Building Society has launched a two-year fix at 2.48 per cent. It is the cheapest short-term deal available, but there is a catch

There is a £1,495 fee and borrowers need a 30 per cent deposit. Chelsea has also launched five, six and seven-year fixed rates.

Borrowers with a 30 per cent deposit can get a 3.99 per cent rate regardless of the term.

This rises to 4.89 per cent for those with 20 per cent equity or 5.39 per cent for ten per cent equity.

The fee is £195 but you get £500 as cash back. Coventry Building Society has launched new two, three and five-year fixed-rate loans with no early redemption penalties.

Its five-year Flex fixed rate for borrowers with 25 per cent equity or deposit is 4.35 per cent.

The upfront fee is £999. Two mortgage deals aimed at first-time buyers with just a five per cent deposit are being offered through broker John Charcol.

Newbury Building Society’s family offset loan has a variable rate of 3.95 per cent for three or five years. A family member must put down at least 20 per cent of the property purchase price in an offset savings facility.

There are no fees. Saffron Building Society is offering a 6.49 per cent deal fixed until April 2015, with a £195 fee.