Chelsea offers five-year fix at 3.99% Mortgage borrowers hedge against uncertainty
16 June 2010
Chelsea Building Society has launched a market-leading 5-year fixed rate mortgage which charges 3.99%. It is available for those with a 25% deposit and has an arrangement fee of £495.
The new offer from Chelsea joins 5-year fixed rate offers from Britannia and the Co-op, which also charge 3.99% but carry a higher £999 arrangement fee.
Fixed rate numbers rising
According to the brokers John Charcol, more people opted for fixed-rate mortgages in May than at any time since October 2009. Their latest mortgage index shows that 26% of all borrowers chose a fixed-rate deal.
Five years is the longest period that most people fix for, but Chelsea's sister company, Yorkshire Building Society, has a ten year fixed rate deal at 4.99%. The product fee for this is £995, with £195 payable on application and £800 added to the mortgage on completion.
Majority still prefer variable rates
The John Charcol index shows that most borrowers still prefer a variable mortgage, expecting interest rates to stay at their current low levels. Some new tracker deals are currently as low as 2.65% and even standard variable rates at 3.99% for some lenders.
Shop around for the best deal
Sign up now to watch the Which? Money 2010 emergency budget liveblog
Chancellor of the Exchequer George Osborne will deliver the government’s emergency budget on Tuesday 22 June, and you can follow his speech as it happens on the Which? Money 2010 emergency budget liveblog.
Sign up now for an email reminder to join us for the Chancellor's budget speech, and come back to www.which.co.uk/emergencybudget on the day to get the Which? Money take on the budget and to add your questions and comments.
Which? Money when you need it
You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.
Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.
Or for money-saving tips, and news of how what's going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast
For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.