Mortgage deal of the week

Mortgage deal of the week

On Monday (12 October) Chelsea launched an 85 per cent LTV deal with a rate of 1.82 per cent, fixed for two years.

The mortgage, which is available to both customers buying a new home and those looking to remortgage, has a £1,545 product fee and is part of a series of reductions across the Chelsea range.

Home-movers or first-time buyers with a 10 per cent deposit can also benefit from changes to the range, which include the launch of a 3.09 per cent two-year fixed rate mortgage, with no product fee, free standard valuation and £250 cashback on completion.

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Brendan Gilligan product manager for Chelsea Building Society, said: “We are committed to helping people into the home of their choice, whether that’s as a first-time buyer, or as a borrower who wants to move into a new place.

“We have launched these mortgages with borrowers who have smaller deposits in mind – we think the 1.82 per cent is an attractive rate for those with a 15 per cent deposit, in addition we have a range of products that come with incentives and no product fee which could be beneficial for those looking to save on upfront costs.

“We feel the new mortgages fit well within our range and there is a wide variety of choice for all types of customers.”

Chelsea Building Society’s decision to amend the priced of its two-year fixed rate mortgage caught the attention of Mr Hollingworth.

The deal now has a price of 1.84 per cent to 31 January 2018.

This deal is for first and second-time buyers only who borrow between £25,000 and £5m at 75 per cent loan-to-value.

No fee is payable and there is an incentive package of free valuation and a £250 rebate upon completion of the mortgage.

This deal has the flexibility of being able to make overpayments, underpayments and take payment holidays.

According to Moneyfacts the deal is highly competitive and heads straight into their Best Buy tables.

Mr Hollingworth said: “The Chelsea deal is certainly very well priced.”

Elsewhere Accord Mortgages reduced the rates on its 90 per cent and 95 per cent loan-to-value (LTV) two-year fixed rate residential mortgages by 0.15 per cent, with the added incentive of cashback on completion for house purchase.

The intermediary-only lender, which is part of Yorkshire Building Society Group, is now offering borrowers with a 10 per cent deposit a two-year fixed rate mortgage at 3.24 per cent, with £250 cashback on completion.

The mortgage has no product fee and offers free standard valuation for house purchases.

Also on offer is a 4.59 per cent two-year fixed rate mortgage at 95 per cent LTV, with no product fee and £130 processing fee.

The mortgage has a £750 cashback on completion and offers free standard valuation for house purchases.

Paragon Mortgages also confirmed it was launching a new product range aimed at professional landlords with larger-scale portfolios; available through an exclusive distribution network.

Paragon Premier features enhanced criteria and includes a range of lifetime trackers starting at 4 per cent, three-year fixes starting at 3.55 per cent and five year fixes at 4.5 per cent.