Chelsea Building Society’s Unique Offset Deal.

by Mark Johnston

Chelsea Building Society’s Unique Offset Deal.

It now seems that first time buyers are becoming the toast of the UK property market as lenders are beginning to woo them with interesting deals involving new offers and more products.

The Chelsea building society, which is owned by Yorkshire building society, has recently launched a very unique mortgage range that could allow first time buyers access to the property ladder via an offset mortgage at no additional cost to the mortgage.

ChelseaOffset mortgages are something that most first time buyers rarely look in to when they are searching for a mortgage. This is mainly due to the fact that many first time buyers believe that a sizeable savings pot is required.

Offset mortgages can be a smart way for borrowers to make the most of their savings whilst also reducing the burden of their mortgage.

Offsetting works by linking a mortgage to a savings account with the same bank or building society. Borrowers then forego any interest they may get on their savings and in return the total amount of interest paid on a mortgage is reduced.

The building society’s fixed rate offset mortgages are now available across a range of first time buyer’s loan to values (LTV) which include 75 per cent, 85 per cent and 90 per cent.

Borrowers with a 75 per cent loan to value (LTV) ratio can opt for a fixed rate of 2.99 per cent with a fee of £1,495 or they can choose a fixed rate of 3.19 per cent with a reduced fee of £495.

For those potential borrowers with a smaller deposit of 15 per cent the fixed rate is 4.24 per cent with a fee of £495 or borrowers with a 90 per cent loan to value (LTV) ratio the fixed rate is 4.49 per cent with a fee of £1,495.

Any customers who do decided to take up these offers will also receive 1 per cent of the value of the loan as cash back, which could help some first time buyers towards the cost of their stamp duty or any other costs involved with buying a property.

Chelsea building society state that “first time buyer benefits are a direct result of research carried out by the society in to their customers needs”. This research showed that nearly 75 per cent of first time buyers wanted to keep on saving even after they got their mortgage.

Sunjeev Sahota, Chelsea building society’s product manager, added “we have listened to first time buyers and we therefore recognise that each individual case is unique, but this new mortgage range with offset, cash back and competitive rates highlights our focus and determination to offer excellent mortgages and to continue helping first time buyer’s step on to the property ladder”.

Many experts feel that this renewed focus on first time buyers is long overdue and is therefore a huge step in the right direction.

Mark Harris, chief executive at SPF Private Clients has also predicted that conditions should improve further for many first time buyers.  







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