Its existing five-year fixed rate mortgage product has been withdrawn and been replaced with a lower interest rate.
John Cooke, mortgage marketing manager at the Chelsea, said: “We have seen applications and completions for the five-year fixed rate mortgage doubling each quarter so far in 2004 and as this particular area of the market is growing it is important that we offer a competitive product to meet those needs.”
David Emsley, director of Mortgage Advice Services Ltd, said: “Unlike many lenders who combine competitive rates with low LTVs just to feature at the top of comparison tables, the Chelsea has kept its LTV at the standard 95 per cent allowing a wider audience to benefit from this offering.”
The new five-year fixed rate is priced at 5.54 per cent (6.5 per cent APR) until 30 November 2009 with a maximum LTV of 95 per cent. The arrangement fee is £395 with an administration fee of £245.
The minimum loan is £25,000 and the maximum is £1 million with an early repayment charge of 5 per cent until 30 November 2009. There are free legal fees or a £200 contribution.
Mark Fenton, director at Fenton Simpson Financial Services, said: “It is a strong product. The fees are fairly high but large amounts are being borrowed; our average mortgage is around £100,000 so the fees are relative to the size of the loan.”
