‘Lowest ever’ five year fixed rate mortgage from the Chelsea

Chelsea Building Society has launched its lowest ever five year fixed mortgage.

Homebuyers seeking a mortgage of up to 70 per cent loan to value can choose a rate of 3.19 per cent, or an offset option at 3.39 per cent.

Both deals have a fee of £1,495, the society said.

The new five year deal could offer homeowners a glimmer of hope in the face of rising living costs, according to uSwitch.com.

Michael Ossei, the comparison site’s personal finance expert, said that although it may be another year before the base rate rises, the only way for mortgage rates to go in the long term is up.

“Consumers can protect themselves against these rises by fixing – but this has tended to come at a high price,” he said.

“The launch of this lowest long term five year fixed in market from Chelsea will offer peace of mind but without the hefty price tag.”

The Chelsea has also cut its two year fixed rates available up to 85 per cent LTV.

Borrowers can now choose from a lending rate of 3.44 per cent, or 3.64 per cent offset, each with an £1,895 fee. A fees assisted option is also available.