Chelsea Mortgage question

asandwhen

I have a Chelsea Cashback mortgage that was taken out in July 2007 fixed at 6.84% (got 6% cashback). In the small print it states that if I wanted to rent my property out my rate would revert to SVR + 0.25% which would mean when there SVR rate comes down on 31st Dec I would be paying 6.04% (cheaper than my current rate) and Chelsea still havent priced in the most recent interest rate cut so could be 5.54% soon. Will they honor this?

koexelek

No doubt they will try and wangle their way out of it, but if it states it on the offer, they should be made to honour it.

asandwhen

The thing is I have just checked on there website and they still offer the cashback mortgage allbeit veriable now instead of fixed but it is there SVR + 0.45% but in the small print it still says that if we agree to let you rent it out you will have to pay SVR + 0.25% (so in other words cheaper). I just dont get it.