Borrowers seek out Chelsea offset mortgages

Chelsea Building Society has seen strong demand for offset mortgages since these options were introduced across its standard mortgage range five months ago.

Two in five Chelsea borrowers now choose an offset product and these are a mixture of customers who either have a lump sum to offset their mortgage loan or who want to start saving regularly and appreciate the flexibility offset can give.

"Chelsea Building Society is the only lender to offer offset alternatives across its full mortgage range, priced just 0.2% higher than the non-offset mortgages," said Chelsea product manager Jemma Smith.

"We are the only provider with an offset version of our innovative track and fix mortgage, where borrowers have the benefit of a tracker now and the peace of mind of knowing their future fixed rate.

"While the Bank of England Base Rate remains at its historic low, offset mortgages can give much higher returns than equivalent savings accounts and, at the same time, can reduce the monthly payments or mortgage term, saving borrowers potentially thousands of pounds in interest."

The Chelsea is cutting rates across its mortgage range, including offset products, from today.

Among the changes to products is a drop for 90% LTV loans, taking the rates for a two or three year fixed rate offset mortgages to 4.44% and 4.59% respectively. In addition, fees on these products have been cut and lower fee options introduced.

First time buyers may be particularly attracted to the Offset Plus mortgage which, as well as a borrower's own savings, can link the savings of their family or friends, to give the benefit of a higher total savings balance offset against their mortgage.