by Mark Johnston
Chelsea Building Society Drop its Rates.
The Chelsea building society is part of one of the largest Building Societies in the UK, the Yorkshire Building Society which is the second largest building society in the UK, following the merger on 1st April 2010.
Due to the merger with the Yorkshire Building Society consumers can continue to enjoy all the advantages of Chelsea’s high quality personal service, not to mention a range of accounts designed to suit their needs, behind the scenes they will benefit from the added support of an organisation with assets of over £30 billion.
Recently the Chelsea Building Society has offered rates starting at 3.24 per cent on 85 per cent loan to value (LTV) products after reducing rates by up to 25 basis points.
Included in the 85 per cent loan to value (LTV) product range is the 3.24 per cent two year mortgage, available for purchase or remortgage customers with a £1,545 fee. The same fee applies for the three year product at a slightly higher rate of 3.69 per cent or the five year option at 3.84 per cent.
All the 85 per cent loan to value (LTV) products have a maximum loan size of £1 million while the cap for the 65 per cent product is £5million with no restriction on application method be it in branch, online or over the telephone.
A 3.59 per cent two year mortgage is also offered on 65 per cent loan to value (LTV) ratio with £745 fee and £500 cash back for purchase customers or free valuation and legal assistance for remortgage customers. The three year option is offered at a rate of 3.94 per cent.
However, a mortgage application processing fee of £130 is payable on all mortgage applications. This fee is payable on application and is strictly non refundable. This fee is charged to cover the costs involved with processing a mortgage application
Chelsea Building Society product manager Brendan Gilligan says: “This range of 85 per cent loan to value products will again be among the best available.”
On top of these new rates it also appears that while much of the competition for low rates in the best buy tables is around mortgages needing a 35 to 40 per cent deposit, the building society has now taken mortgages below 2 per cent for those with a 25 per cent deposit, cutting the rate on its two year fix mortgage to 1.99 per cent.
The 1.99 per cent rate makes the Chelsea product a best buy for the level of deposit.
However, the revert rate alone makes this product quite expensive if borrowers land on the standard variable rate at the end of the deal period and do not move.
Potential borrowers should also expect to pay fees of £1,675 on this particular product.
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