The existing two and three-year products have been withdrawn at 5.24 per cent and 5.49 per cent respectively with the new products taking effect on 30 September 2004.
The two-year rate is fixed at 4.94 per cent (6.7 per cent APR) until 31 October 2006. The product has a maximum loan-to-value (LTV) of 95 per cent with a minimum loan of £25,000 and a maximum of £350,000. There is an early repayment charge of 3 per cent until 31 October 2006, an arrangement fee of £395, an administration fee of £245 and there are free legal fees or a £200 contribution.
The three-year rate is fixed at 5.24 per cent (6.7 per cent APR) until 31 October 2007, with the only other difference between the products being a maximum loan fee of £1 million.
Jeremy Hicks, PR controller at the Chelsea Building Society, said: “With ‘Mortgage Day’ fast approaching, these competitively-priced products will become even more attractive when lenders not ready for regulation adjust their pricing to reduce the flow of applications.”
Rod Murdison, proprietor of Murdison & Browning, said: ‘It appears that Chelsea are aiming to capture a share of the remortgage market by offering free legal fees for applicants changing their mortgages. They are pretty competitive, anything under 5 per cent always appears attractive but there are better deals out there. Any incentives or contributions always enhance a product.”
