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Chelsea Launch New Fixed and Capped Rate Mortgages

Added: (Mon Nov 27 2000)

Pressbox (Press Release) - 8th November 2000

CHELSEA LAUNCH NEW RANGE OF FIXED
AND CAPPED RATE MORTGAGES

Chelsea, the country・s eighth largest building society has unveiled an attractive new range of
Fixed and Capped Rate Mortgages.

The new range of products is as follows:

NEW Fixed Rate Mortgages

4.99%, 7.4% APR FIXED until 1st February 2003 for loans up to 90%* of the purchase price or value of the property (whichever is lower).

5.49%, 7.5% APR FIXED until 1st February 2003 for loans up to 90%* of the purchase price or value of the property (whichever is lower). There is no early repayment charge outside the fixed rate period with this product.

5.79%, 7.5% APR FIXED until 1st February 2003 for loans up to 90%* of the purchase price or value of the property (whichever is lower). There is no early repayment charge outside the fixed rate period with this product.

Buy to Let Fixed Rate Mortgage - 7.29% 7.8% APR FIXED until 1st February 2006 for loans up to 60% of the purchase price or value of the property (whichever is lower). See below for details of other changes being made to the Society・s Buy to Let Mortgage. For more information about the Chelsea Buy to Let Fixed Rate Mortgage, see Note 3.

NEW Capped Rate Mortgages

5.79%, 7.5% APR CAPPED until 1st February 2003 for loans up to 90%* of the purchase price or value of the property (whichever is lower). There is no early repayment charge outside the capped rate period with this product.

6.19%, 7.5% APR CAPPED until 1st February 2004 for loans up to 90%* of the purchase price or value of the property (whichever is lower). There is no early repayment charge outside the capped rate period with this product.

6.49%, 7.5% APR CAPPED until 1st February 2005 for loans up to 90%* of the purchase price or value of the property (whichever is lower). There is no early repayment charge outside the capped rate period with this product.

* For direct applications i.e. not through mortgage intermediaries, loans are available up to 95% of the purchase price or value of the property (whichever is lower).

The new Fixed (with the exception of the Buy to Let) and Capped Rate Mortgages will all
feature no legal fees or a £200 contribution to legal fees (see Note 2 below). The minimum
loan for the new Fixed and Capped Rate Mortgages will be £20,000 (£50,000 for the new
Buy to Let Fixed Rate Mortgage).

With the exception of the 5.79% Fixed Rate Mortgage which does not carry an arrangement
fee, all of the new Fixed and Capped Rate Mortgages have an arrangement fee of £295, which is deducted from the advance.

In addition to the launch of the Buy to Let Fixed Rate Mortgage, there are a number of other
changes to the Society・s Buy-to-Let Mortgage. These are as follows:

l Borrowers may now have up to 5 Buy-to-Let Mortgages provided that the total value
of these does not exceed £500,000.

l Properties need no longer be vacant at the time that the Chelsea Buy-to-Let Mortgage is taken out, provided that the existing tenancy is an Assured Shorthold Tenancy with a term of no more than 6 months.

l The early repayment charge for the Buy to Let variable rate product is changing from 3
months interest on any amount repaid in the first 5 years to 2% of the sum repaid.

With the launch of these new products, the Society has taken the opportunity to review
its existing product range. As a result the Cashback Plus Discount, Five Year Discount and
existing Fixed Rate Mortgages are being withdrawn with immediate effect.

All Chelsea・s Mortgages are available to new borrowers for purchase and remortgage and for
existing Chelsea borrowers if they are moving home. Borrowers can choose to arrange their mortgage on a repayment or interest only basis. With Chelsea Mortgages, you do not have to arrange your insurances with the Society and will not have to pay a mortgage indemnity guarantee premium for loans of up to 90% of the purchase price or value of the property (whichever is lower).

Further details of the new Fixed and Capped Rate Mortgages are contained in the Notes below, but please refer to the product leaflets for full details (copies are available on request).



Anyone wishing to find out more about any Chelsea Mortgage can either visit their local
Chelsea branch or call the Society FREE on 0800 291291. To request mortgage information or make an enquiry visit www.thechelsea.co.uk.

The Society introduces only to the Norwich Union Marketing Group, members of which are regulated by the Personal Investment Authority and/or IMRO, for life assurance, pensions and investments.

Notes

1. Early Repayment Terms
If you repay the mortgage in full or make an early repayment of capital, interest will be payable on the sum repaid up to the end of the month in which the repayment is made. Listed below are the additional fees that will apply to each of the new products where an early repayment is made during a specified period (unless the mortgage is simultaneously replaced with a new Chelsea mortgage on a different property - this does not apply to Buy to Let):

4.99% Fixed Rate - 3% of the amount repaid until 1/2/2006
5.49% Fixed Rate - 3% of the amount repaid until the end of the fixed rate period i.e. 1/2/2003
5.79% Fixed Rate - 3% of the amount repaid until the end of the fixed rate period i.e. 1/2/2003
Buy to Let 7.29% Fixed Rate Mortgage - 3% of the amount repaid in the first 5 years.
5.79% Capped Rate - 3% of the amount repaid until the end of the capped rate period i.e.
1/2/2003
6.19% Capped Rate - 5% of the amount repaid until the end of the capped rate period i.e.
1/2/2004
6.49% Capped Rate - 5% of the amount repaid until the end of the capped rate period i.e.
1/2/2005

2. No Legal Fees or a £200 contribution. You will pay no legal fees provided:

l You are moving your mortgage but not your home; and

l Your home is in England or Wales; and

l Chelsea・s Solicitors are used (who will carry out only the standard work required to transfer your mortgage).

In all other cases, for example if you are moving home, if your property is located in Scotland or Northern Ireland or your legal requirements exceed the standard work of just moving your mortgage because, for example, the title to your property is not yet registered, we will still contribute £200 towards your legal fees. You will of course have to pay any legal costs above this figure. If the transfer of your mortgage to the Chelsea does not proceed you will be liable for any legal cost incurred.


3. New Buy to Let Fixed Rate Mortgage.
At the end of the Fixed Rate Term i.e. 1/2/2006, the rate will revert to the Chelsea Building
Society Standard Variable Rate plus 0.25%.

4. Administration Fee. An administration fee of £245 is payable (£195 of this fee is payable on application and the balance is deducted from the advance). This fee is in addition to any arrangement fee that is charged on fixed or capped rate mortgages.

FOR PRESS ENQUIRIES PLEASE CONTACT - Darren Stevens : 01242 271115

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