Customers will be able to choose which rate is most suitable to them - then choose their term length, five years, six years or seven years. Rates will also apply to all the products irrespective of term with a low fee, as well as a £500 cash-back .
Headline rates include a 3.99% at 70% LTV with a £195 fee and £500 cash-back, a 4.89% at 80% LTV with a £195 fee and £500 cash-back and a 5.39% at 90% LTV also with a £195 fee and £500 cash-back.
Commenting on the new product Chris Smith the Chelsea's Group Mortgage Manager said:
"We believe that this addition to the Chelsea range gives our members much more choice when they are taking out a mortgage with us. Customers can decide how long they wish to fix their mortgage payment for which can be a big help when the economy is looking rather gloomy. By allowing them to choose extended terms we can offer some stability for those who wish to know what their monthly outgoings are going to be for the longer term.
"Looking at our other products, we are happy to be launching the lowest five-year fixed rate in the market at 3.39% with a £1495 fee available up to 70%. We do however understand that not all of our customers wish to commit to a fixed rate mortgage and for that reason we are proud that our £1.99% two-year tracker mortgage is the best in the market ensuring that we really do offer something for everyone."
Michelle Slade, spokesperson for Moneyfacts.co.uk described the new range as a good alternative to regular fixed rate mortgages:
"I believe this product will be well received by customers as it gives them a lot more freedom when choosing their mortgage as well as offering a low fee and cash-back offer. Within the mortgage market currently many customers are unsure about whether they should fix, or whether they should stick to a tracker. These new products from the Chelsea will allow customers to consider both options and will be seen as a good alternative by many."
