Chelsea’s latest two-year fixed rate is 1.29%

Chelsea’s latest two-year fixed rate is 1.29%

Chelsea Building Society has launched a range of two and five-year fixed rate mortgages with added incentives, specifically for borrowers looking to remortgage.

The new range includes short and longer term options across 65 per cent, 75 per cent, 85 per cent, and 90 per cent loan-to-values, and a choice of fee-free mortgages.

These can be obtained online or via a telephone.

Article continues after advert

The building society offers a two-year fixed rate mortgage at 1.29 per cent for those with a 35 per cent deposit.

This comes with a £1,545 fee. A fee-free two-year fixed rate is also available at 65 per cent LTV at a rate of 1.69 per cent.

Those on the look-out for a longer fix can choose a five-year home loan at 2.29 per cent with a £1,545 fee, or a 2.59 per cent fee-free deal at 75 per cent LTV.

The move comes after Chelsea Building Society launched a new fee-free offset mortgage range back in April 2016.

The deals then included a free standard valuation, with house purchase customers also bagging £250 cashback on completion, while remortgage customers were given free standard legal fees.

Richard Barker, product manager of Chelsea Building Society, said: “Two and five-year terms are popular with remortgage customers at the moment.

“Many borrowers are looking to lock into a competitive deal with the reassurance of knowing what their monthly repayments will be until the next decade, whilst others have an eye on the Bank base rate and prefer to fix for a shorter period.”

David McGregor, principle and mortgage and protection advisor at DFM-UK, said: “This is a very competitive rate from Chelsea.

“Even with the added fees the typical rate from a lender for 60 per cent loan-to-value is 1.34 per cent with a £999 added fee and cashback of £250 so Chelsea are offering a very competitive product..

“Building societies are pricing their products in this area of the market as it is a much less risky form of lending due to the low loan-to-values. Both Nationwide and Leeds have similar rates.”