Track the record low base rate now but fix for the future

Chelsea Building Society is seeing increasing numbers of borrowers attracted to its innovative track and fix mortgage as uncertainty over the economy and interest rates continues.

The Bank of England's Monetary Policy Committee announced last Thursday that it would be keeping the base rate at its historic low of 0.5% for another month despite calls from some economists to reduce it even further.

"At a time when there's so much uncertainty around interest rates amid the economic turmoil in Europe, the Chelsea's innovative Tracker to Fixed mortgage offers borrowers the best of both worlds," said Chelsea Building Society Product Manager Jemma Smith.

"Borrowers can benefit from a tracker rate of 2.89% (BoE +2.39%) for the first two years of the product, and fix for the final three years of the term at a competitive rate of 4.09%.

"Offering this combination enables customers to save while the Base Rate is low and have the security of knowing their fixed rate in the future when interest rates are expected to climb.

"In addition to the standard Tracker to Fixed mortgage, the Chelsea is the only lender in the direct market to offer an offset alternative. The offset option is priced at just 0.20% higher than the standard product, so borrowers can use their savings to save even more on their monthly repayments or cut the length of their mortgage."

Chelsea Building Society's Tracker to Fixed mortgage and offset equivalent are available for LTVs up to 90% and applications can be made online - at thechelsea.co.uk/mortgages.