Borrowers can also take out an offset option at a rate of 3.39%.
The deals are available direct-only and offer a product fee of £1,495.
Last week, Moneyfacts revealed that the average arrangement fee increased by almost 70% over the last 12 months from £899 to around £1,500.
Jemma Smith, Chelsea Building Society product manager, said: “This is the lowest five year fixed-rate mortgage ever to come to the market, which is great for customers wanting longer term security in fixing what is likely to be their biggest monthly outgoing.”
Smith added: “We raised our profile in the mortgage market in 2011 with a range of popular and innovative products and want to build on that success in 2012, encouraging even more borrowers to consider the Chelsea, whatever type of mortgage they are looking for.”
