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First-time Buyers

Chelsea BS launches 1.99% three-year fix

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
12/04/2013

Chelsea Building Society has extended the sub-2% rate war to three-year fixed rate products with the launch of a new mortgage from today.

The direct-only lender, part of the larger Yorkshire Building Society group, will offer a three-year fixed rate mortgage at 1.99% for mortgages up to 60% LTV. The mortgage has a £1,545 fee.

Chelsea currently offers the lowest price two-year fix on the market, with its 1.74% deal also available up to 60% LTV with a £1,545 fee.

“Borrowers choose fixed rate mortgages to give them peace of mind and make it easier to budget for their monthly outgoings,” said Chelsea Building Society product manager Brendan Gilligan.

“The Chelsea has made a strong start to mortgage lending so far this year and we’re really pleased to be able to offer another best buy fixed rate product.

“This three year mortgage gives additional choice to homebuyers with a larger deposit, or home owners who want to remortgage and have at least 40% equity in their property.”

First Direct, which does not operate via intermediaries, has also made cuts to its range of 90% products. From today the lender will offer the following products:

– 90% LTV 3.99% 3 Year Fixed rate with a £999 booking fee
– 90% LTV 4.29% Fee Free* 3 Year Fixed rate
– 90% LTV 4.19% 5 Year Fixed rate with £1,499 booking fee
– 90% LTV 4.49% Fee Free* 5 Year Fixed rate

Andy Forbes, head of retail products at First Direct, commented: “In response to increased demand for high LTV mortgages we have reduced our 90% LTV rates by up to 30 basis points to ensure our customers have access to our most competitive rates.

“Also, to drive down the up-front cost of purchasing a property, first direct currently offers a fee free option on all its 90% LTV mortgages, helping buyers avoid arrangement, booking and valuation fees.”

In the intermediary market, Abbey has also made a number of rate cuts to its products from today including launching a five-year fixed rate product at 3.74% with a £995 fee.