Chelsea Mortgages
Discussion
Chelsea Mortgages are currently offering 6% cashback on the vale of your mortgage if you change to them. Pro's and Cons that I can see are as follows
The plus side is as follows :-
1. They are giving a 6% cashback on the mortage and the standard rate is pretty similar to other lendors - some lendors are slightly cheaper, some more expensive.
2. They offer free survey and legal fees, so it is costing me nothing to remortage. The cashback will be used to clear all my credit cards and probably pay for a holiday too, so it is very useful.
3. The whole thing can be done by post and telephone.
4. No fees to mortage brokers, who often want up to 1% of the loan and try and sell you insurance etc...
The bad points are :-
1. Some lendors offer slightly cheaper standard variable rates (e.g. Nationwide BS). Chelsea aren't bad, but they certainly are not one of the best.
2. There is no option to fix the mortgage rate so if rates increase there is little protection.
3. There are redemption penalties if you switch lendor within 6 years - you have to pay the 6% back. However if you change to another Chelsea BS product you pay back 1% for every year of the 6 years left of your tie in period.
What are the thoughts on Chelsea? is it a risk been tied in with them for 6 years? or are they always pretty close to the base rate?
Im also not 100% sure what the rate is? anyone know?
Thx
The plus side is as follows :-
1. They are giving a 6% cashback on the mortage and the standard rate is pretty similar to other lendors - some lendors are slightly cheaper, some more expensive.
2. They offer free survey and legal fees, so it is costing me nothing to remortage. The cashback will be used to clear all my credit cards and probably pay for a holiday too, so it is very useful.
3. The whole thing can be done by post and telephone.
4. No fees to mortage brokers, who often want up to 1% of the loan and try and sell you insurance etc...
The bad points are :-
1. Some lendors offer slightly cheaper standard variable rates (e.g. Nationwide BS). Chelsea aren't bad, but they certainly are not one of the best.
2. There is no option to fix the mortgage rate so if rates increase there is little protection.
3. There are redemption penalties if you switch lendor within 6 years - you have to pay the 6% back. However if you change to another Chelsea BS product you pay back 1% for every year of the 6 years left of your tie in period.
What are the thoughts on Chelsea? is it a risk been tied in with them for 6 years? or are they always pretty close to the base rate?
Im also not 100% sure what the rate is? anyone know?
Thx
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