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Chelsea Mortgage question

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?

Comments

  • koexelek
    koexelek Posts: 7,847 Forumite
    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.
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • asandwhen
    asandwhen Posts: 1,407 Forumite
    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.
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