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Chelsea races against buy-to-let leaders

Two Year Fixed Rate Buy-to-Let

Type: Buy-to-Let mortgage

Fixed term: Until November 30, 2006

Fixed rate: 5.75%

Minimum loan: 35,000

Maximum loan: Up to 80% of valuation subject to a maximum of 600,000

Income multiples: Rental income must be at least 130% of mortgage repayments

Arrangement fee: 445 plus 245 administration fee

Redemption fee: 3% until November 30, 2006

Introducers fee: Refer to lender

Tel: 08702 404808

Chelsea Building Society has established its first two-year fixed-rate buy-to-let mortgage at 5.75 per cent up to 80 per cent of valuation.

Charcol product development manager Elliot Nathan says: ” The product is one of the lowest two-year fixes for buy-to-let and is suitable for borrowers who want stability in their mortgage payments and security against potential future interest rate rises. The product calculates the rental income at 130 per cent of the pay rate which is very good.”

When asked about the potential drawbacks of the product Nathan says: “There is nothing wrong with this product.” In his view, the only competition the Chelsea deal will face is the Clydesdale Bank two-year buy to let fixed rates at 5.29 per cent and 5.45 per cent, which are re-mortgage only deals with free valuation and free legal fees.

Nathan concludes: “The Clydesdale products are up to 80 per cent of valuation and calculate the rental calculation at pay rate. They show far better value than the Chelsea deal.”

Suitability to market: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Average

Overall 7/10


NAEA report backs BoE ‘modest adjustment’

House prices in the UK fell by 1.56 per cent over the last month and rose by 6.05 per cent annually, according to figures released today by the National Association of Estate Agents. The NAEA report backs up the Bank of Englands projections for a modest adjustment in house prices.


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