The new product is available for up to 60% loan to value and has a £1,695 fee.
Sunjeev Sahota, product manager at Chelsea Building Society, said: "We're committed to providing the most competitive mortgages and are pleased to be able to offer another market-leading short term fixed rate."
"The Chelsea has made a strong start to mortgage lending in 2013 and now we've reduced what was already an excellent best buy product by a further 0.15%, which will appeal to home buyers with a larger deposit or homeowners wanting to remortgage.”
Chelsea also announced that it will be offering an offset equivalent at 1.94%.
Sahota said: "Offset mortgages are particularly popular among Chelsea borrowers so we're glad to be able to offer the additional choice of an offset version of such a competitive mortgage."
