Bradford & Bingley fixed-loan rate advice issued

Recently lenders have been dropping their fixed rates for mortgages and loans at an increasing rate, leaving borrowers in an often-difficult position about which deal to choose.

The headline rates war was started by Nationwide and Halifax, whose rates now stand at 4.39 per cent and 4.29 per cent respectively. However, Newcastle is currently offering the lowest two-year product at just 4.22 per cent.

First and foremost Bradford & Bingley is advising borrowers not to be tempted by the headline rate alone, as there are often large arrangement fees attached, which isn't thrifty, especially for smaller amounts.

Duncan Pownall, mortgage development manager at Bradford & Bingley, advises borrowers to beware: "Lenders are clearly desperate to try and retain customers, especially those coming off cheap fix rates from two years ago, so are devising better deals to keep them."

But with the competition in the market, it is certainly a good time for borrowers to look for good deals, as lenders are devising various special offers to entice customers to their institutions.