Chelsea has launched a new range of mortgages, which have no fee and are available up to 85 per cent loan to value, which could help first time buyers to get a foot on the property ladder.
Not having to pay a fee when taking out a mortgage can save money in more ways than one, because many borrowers add the cost of the fee onto their mortgage, and therefore pay interest on it along with the rest of the balance, so they end up paying for it twice.
The new additions to Chelsea's home loan range include fixed rate mortgages of two, three or five years, and a two year tracker mortgage.
The Chelsea two year fixed rate mortgage comes at a rate of 4.89 per cent with no product fee, while the other new mortgages also have no product fee, legal fee or valuation fee; they include a three year fix costing 5.59 per cent, a five year fix at 6.09 per cent, and a two year tracker at 4.39 per cent.
Commenting on the new deals, Tim Taylor, head of customer services at Chelsea mortgages, said: "For borrowers in today's market, getting a deposit alone is tough. Hidden extras like fees and charges can hurt. We're delighted that this range really does offer a genuine alternative to banks."
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