This could be the catalyst to stir borrowers up to fix their mortgages before rates start to rise, as Yorkshire Building Society promises this heralds its planned launch of a wave of “highly competitive mortgages” since Chelsea merged with Yorkshire Building Society on 1 April last year.
The Chelsea BS product is 0.20% cheaper than the current best buy five year fix from Yorkshire Building Society, Chelsea’s parent company at 4.19%, however, the Chelsea product comes with a £1,995 fee.
The other fixed rate of 4.39% is offered with a £595 fee. Both products are available up to 75% LTV.
Chelsea Building Society’s group direct mortgage manager Chris Smith, said: “These new five year fixed rate mortgage offers broaden the range that’s available to customers by adding longer term options to the existing range of Chelsea mortgages. Demand for five year fixed deals has been rising, particularly among borrowers seeking a larger loan, so we’re expecting high levels of interest.
“We will have two of the best five year fixed rate deals in the market; typically, the reduction in monthly repayments borrowers can achieve with the 3.99% product makes that the more cost effective option for loans of £104,500 or more.”
