MSE News: Chelsea's top 10-year fixed mortgage that comes with a catch

efunc wrote: »

This looks really attractive to me. I really don't see the catch:

"Security comes at the cost of flexibility. If the borrower needs to move home they can take the deal with them and should hopefully be able to top up with a new rate from Chelsea."

How is that different from any other mortgage? You would just transfer the great 10yr deal to the new property and top up with a second mortgage, if required, from any of the great rates that may be available on the open market at the time, surely? Can someone spell out why this is really something to be avoided?

I think it's a fantastic deal for somebody who is at a stage in life where they know "This is where I'm going to stay for at least 10 years". I would suggest that most first time buyers don't come under this category, but even they can benefit.

The article rightly draws attention to the ERC and portability clauses, but as you point out this is no different to any other fixed rate mortgage.

I think the MSE headline is, as happens too often, a tad unhelpful. But potential borrowers do need to think through the possible courses that their life could take before effectively committing to one lender for so long.