Discount mortgages tipped over fixes

Fixed rate mortgages have become poor value for money as the fallout from the credit crunch continues, figures have revealed today.

Two and three-year fixed rates can cost up to £2,000 more than the cheapest discounted rates when the overall cost of the loan is taken into account,

The credit crunch has made funding for fixed-rate deals increasingly difficult and made them less profitable for lenders, who are imposing high prices to obtain a fixed rate mortgage.