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Lender says...

Chelsea Building Society has launched a three-year variable rate discount mortgage as part of revisions made to its product range.

The mortgage has an initial rate of 6.49 per cent and will be linked to the standard variable rate for three years.

It is available up to 90 per cent loan-to-value and has a £995 arrangement fee.

There are also early repayment charges of 3 per cent in the first year, 2 per cent in the second and 1 per cent in the third.

The product comes with a free valuation for house purchase and a free valuation and assisted legal fees for remortgages.

Chelsea's previous standard rate of variable rate discount mortgages, excluding buy-to-let, prospect and self-cert mortgages, was withdrawn last week.

Adviser says...

Brian Rossiter, managing director of Ellesmere Port-based IFA Armchair Mortgages, said the discount of the standard variable rate was very good and stood up well against the fixed rate options in the market.

He said: "The deal is offered with a free valuation and free legals and income multiples are fairly generous at 4.5 times joint income up to 75 per cent LTV.

"There is the normal three-year tie in with no overhanging redemption fee. With the freebies on offer it should have a place in the market for borrowers not considering a fixed rate mortgage and would be attractive to that type of client."

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