Record Low Mortgage Deal from the Chelsea Building Society

The Chelsea Building Society launched a new product this week which the lender boasts is its lowest ever priced five-year fixed-rate mortgage. If potential borrowers can find a 30 per cent deposit, then the Chelsea has a mortgage available of up to 70 per cent loan-to-value (LTV) with an interest rate of just 3.19 per cent or an offset version with a rate of 333.39 per cent. A fee of £1,495 comes with both kinds of mortgage, the building society revealed, before adding that it has also cut the cost of its two-year fixed-rate deals which are available on mortgages of up to 85 per cent LTV. For these borrowers, there is now a choice of 3.44 per cent or 3.64 per cent offset rates, along with a fee of £1, 895 plus a fees-assisted option. As living costs increase, the new cheaper deals from the Chelsea coming as they do hot on the heels of other low-cost mortgage deals by other lenders could spell good news for mortgage-holders and first-time buyers previously stymied by cost of living increases, uSwitch personal finance expert Michael Ossei said. Mr Ossei noted that although the base rate of interest may not increase for another year or so, mortgage rates are only going to increase over the long-term. “Consumers can protect themselves against these rises by fixing but this has tended to come at a high price,” he said. “The launch of this lowest long term five year fixed in market from Chelsea will offer peace of mind but without the hefty price tag.”