Chelsea enters the offset mortgage market
Explaining the reasons behind the launch of offset to Chelsea borrowers, group direct mortgage manager Chris Smith said: “The Yorkshire thinks offset should be a real consideration for all mortgage holders as competitive offset deals such as those offered by the Chelsea can have so many benefits and flexibility for people particularly in the current financial climate.
“We are serious about offset and have invested a lot of time and energy in developing a range that offers financial benefits to most borrowers.”
Chris Smith added: “Offset is the most effective way for members to maximise their savings in difficult economic times.
“The Bank of England base rate has been at an historic low for 31 months – this environment is causing problems for a wide variety of people. Offset can help create a savings culture whilst delivering much higher equivalent returns than regular savings accounts.
“It also allows members the opportunity to either pay off their mortgage early, or reduce their monthly payments dependent on their circumstances.
“Chelsea will be offering exceptional value on its market leading offset mortgages and a choice of loan to value tiers (70%, 80%, 90%), fixed and tracker options, a selection of terms (2,3,5,6 and7 years), low fee and incentive options, alongside the option of offset plus designed to specifically support first time buyers.
“A considerable investment has been made by the society to develop offset functionality within Chelsea Building Society which shows the ongoing commitment to the Chelsea brand. This development means that we are making offset more widely available in the south where our Yorkshire branch network is less widespread, therefore offering the benefit of offset to a greater number of UK borrowers.
“This is a product that is as good as it sounds and we want customers to look at Chelsea when considering offset.”
The Chelsea’s tracker to fix will now be available as an offset option allowing customers to benefit from a low rate of BOE + 1.59% for the first two years, then have the security of a competitive fixed rate for three years.
• 2.49% 2 year fix at 70% LTV, with a £1495 fee
• 2.79% 2 year fix at 70% LTV, with a £195 fee and £500 cash-back
• 3.39% 5 year fix at 70% LTV, with a £1495 fee
• 3.79% 5, 6, 7 year fix at 70% LTV with £195 fee and £500 cash-back
• BoE +1.59% 2 year tracker at 70% LTV, with a £1495 fee.