by Mark Johnston
Chelsea Building Society in 2013.
It seems that since the launch of the governments funding for lending scheme and in particular over the past few months many lenders are queuing up to announce their new products and rate cuts.
The Chelsea building society, which is part of the Yorkshire building society, in particular has made a strong start to mortgage lending in 2013 and therefore they appear to be committed to providing the most competitive mortgages.
The company’s synopsis is that their business is built on strong values and therefore they also feel that they have a ‘long standing culture of giving our customers fair treatment’.
At the beginning of March this year launched a market leading 2 year fixed rate of 1.74 per cent up to 60 per cent loan to value (LTV) and comes with a fee of £1,695.
This was then followed closely by the building society cutting its rates on selected mortgage products by up to 0.30 per cent at the end of March.
The direct only lender cut the rate on its 5 year fixed rate mortgage up to 75 per cent loan to value (LTV) from 2.89 per cent to 2.84 per cent. The 2 year fixed up to 85 per cent loan to value (LTV) was also cut from 3.39 per cent to 3.29 per cent. Both of these particular products came with a fee of £1,545.
Rates in the first time buyer exclusive range were also cut, their 2 year fix up to 75 per cent loan to value (LTV) was cut from 2.99 per cent to 2.69 per cent and came with a fee of £1,345. The rate on a 2 year fix up to 90 per cent loan to value (LTV) went from 4.49 per cent to 4.29 per cent and came with a low fee of just £345.
Sunjeev Sahota, product manager at Chelsea building society, said “we are listening to our customers and continually assessing our product range to offer competitive deals for those with both a small or large deposit”.
However, more recently the building society became the latest lender to launched the market’s lowest ever 3 year fixed rate of just 1.99 per cent on up to 60 per cent loan to value (LTV). This mortgage product comes with a hefty fee of £1,545 and also a non refundable mortgage application processing fee of £130.
This rate therefore ‘trumps’ the existing best buy 3 year deal for 60 per cent loan to value (LTV) mortgages which is currently being by Cumberland building society and has a rate of 2.53 per cent. However, the Cumberland mortgage has a significantly cheaper fee of just £999.
Brendan Gilligan, a spokesperson for Chelsea building society, states that “borrowers choose fixed rate mortgages to give them peace of mind and make it easier to budget for their monthly outgoings”.
This latest product marks a record low for 3 year rates and demonstrates just how much rates have fallen in recent months.
Story link - Chelsea Building Society in 2013.
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