There’s room in the market for long-term fixes but the main action still centres on two years. And Barclays will pay interest on PPI claims with the money going direct to borrowers rather than claims firms


Hero of the week is Northern Rock for slashing a number of its rates. Its lowest two-year fixed rate at 2.99% for loans up to 70% LTV is only available through intermediaries.

Villains of the week are all lenders for making many existing borrowers mortgage prisoners with their interest-only restrictions. While I understand there is some uncertainty before the Financial Services Authority clarifies the Mortgage Market Review, they have all gone too far.