Mortgage bulletin – The Chelsea introduces lowest-ever 5-year fixed rate

Great news from Chelsea Building Society for house hunters hoping to secure a new mortgage with the security of a medium-term fixed rate. The lender has just introduced its lowest-ever rate for a five-year fixed-rate mortgage at a 70% loan-to-value (LTV) of 3.19%. There is also an offset option which carries a rate of 3.39%. The sting in the tail for these low rates is that both products have a fee of £1,495.

"This is the lowest five-year fixed-rate mortgage ever to come to the market, which is great for customers wanting longer-term security in fixing what is likely to be their biggest monthly outgoing," says Chelsea Building Society Product Manager Jemma Smith.

She adds: "We've also reduced rates on some of our shorter-term fixed-rate mortgage deals ensuring that whatever the LTV or term required, we have a competitive deal to suit customers' individual needs."

For borrowers who have a lower deposit to offer, Chelsea is also reducing two-year fixed rates for mortgages available up to 85% LTV. The first is at 3.44%, or 3.64% offset, each of which carries a fee of £1,895 fee. For a reduced fee of £395, the rates are 3.59%, or 3.79% with offset.