Improved fixed rate mortgage deals from the Derbyshire

Derbyshire Building Society is cutting rates on its range of three-year and five-year deals with a three-year fix from 4.89% (5.8% APR).

A five-year fix is available with rates from 5.09% (5.8% APR). Both deals are available from Wednesday August 21.

Other key features include:

– No Mortgage Indemnity Guarantee charge.

– Daily interest method of calculation for capital repayments.

– No early repayment charges after the fixed rate period.

– Choose either a repayment or interest only mortgage.

Nick Williams, head of marketing at The Derbyshire, says: “These new fixed rate deals are highly competitive and should feature strongly in the &#39best buy&#39 tables.

“They will be extremely attractive to borrowers looking to &#39lock in&#39 for a number of years, gaining peace of mind that their monthly outgoings will remain the same whatever happens to interest rates during that time.”

The three-year rates are fixed until 31 October, 2005, and the five-year rates are fixed until 31 October, 2007.

The rates are:

– Three-year fixed rate, up to 80% LTV, is 4.89% (5.8% APR).

– Three-year fixed rate, from more than 80% to 90% LTV, is 5.29% (5.9% APR).

– Three-year fixed rate, from more than 90% to 95% LTV, is 5.59% (5.9% APR).

– Five-year fixed rate, up to 80% LTV, is 5.09% (5.8% APR).

– Five-year fixed rate, from more than 80% to 90% LTV, is 5.49% (5.9% APR).

– Five-year fixed rate, from more than 90% to 95% LTV, is 5.79% (6.0% APR).

Early repayment charges on the three-year deals are:

– To 31.10.03 &#45 3% of the amount repaid

– 1.11.03 to 31.10.04 &#45 2% of the amount repaid

– 1.11.04 to 31.10.05 &#45 1% of the amount repaid

Early repayment charges on the five-year deals are:

– To 31.10.04 &#45 4% of the amount repaid

– 1.11.04 to 31.10.05 &#45 3% of the amount repaid

– 1.11.05 to 31.10.06 &#45 2% of the amount repaid

– 1.11.06 to 31.10.07 &#45 1% of the amount repaid

There is an application fee of £245 for qualifying existing members and £295 for other applicants. Of this, £75 is payable up front and is non-refundable. The balance is paid on completion or can be added to the loan. A standard valuation fee is charged on these fixed rate deals.