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Shop around for the best fixed rate mortgage deal

If you are concerned about potential interest rate rises, you might like the peace of mind afforded by a fixed rate mortgage. We looked for the best fixed rate mortgage deal on the market. Note that the mortgage market is pretty volatile at present, and new deals and offers appear frequently. Keep an eye on the financial pages and the online comparison sites for the latest deals.

The Chelsea Building Society (www.thechelsea.co.uk) offers the low rate of 2.39% on mortgages of up to 70% of the property value. The arrangement fee is £1495, which will make a noticeable difference to your repayments if the amount you are borrowing is fairly low. Monthly repayments would be £886 on a capital and interest basis on a loan of £200,000 over a 25 year period.

The Nationwide (www.nationwide.co.uk) offers a 3 year fixed rate deal of 2.89% on loans of up to 70% of the property value. This is an attractive deal for the longer-term fix, with arrangement fees of £999.

The Yorkshire Building Society (www.ybs.co.uk) offers another 3 year fixed rate deal at 2.94%, but requires only a 25% deposit. Monthly repayments would be £942 on a capital and interest basis on a loan of £200,000 over a 25 year period.

The Yourkshire's 5 year fix has an interest rate of 3.49%. If interest rates start to climb quickly in 2012, that could turn out to be the best fixed rate mortgage deal on the market.

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