Chelsea cuts first-time buyer rates

Chelsea Building Society has reduced rates for customers with 10% and 5% deposits, in what it says is a bid to make its mortgages even more affordable for first-time buyers.

It has reduced rates by up to 0.10%, with borrowers with a 5% deposit able to access a 4.34% rate, fixed for two years. 

The deal has no product fees, free valuation and £250 cashback on completion.

Borrowers with a 10% deposit can access a two-year fixed rate at 2.99%, with a £345 product fee.

Brendan Gilligan, product manager at Chelsea Building Society, said: “We understand the issues first-time buyers can have when trying to get a foot on to the property ladder.

“This is why we offer mortgages to borrowers who have just a 5% deposit and why we always strive to make our rates as competitive as possible, particularly for this group.”