Borrowers looking for a best buy short-term fixed rate mortgage now have more choice thanks to Chelsea Building Society.

The Chelsea is launching its lowest-ever three year fixed rate mortgage – 1.99% at 60% LTV (loan to value) – on Friday, 12 April.

“Borrowers choose fixed rate mortgages to give them peace of mind and make it easier to budget for their monthly outgoings,” said Chelsea Building Society product manager Brendan Gilligan.

“The Chelsea has made a strong start to mortgage lending so far this year and we’re really pleased to be able to offer another best buy fixed rate product. “This three year mortgage gives additional choice to homebuyers with a larger deposit, or home owners who want to remortgage and have at least 40% equity in their property.” The new three year product complements the Chelsea’s two year fixed rate mortgage at 1.74%, also at 60% LTV, which is the lowest two year fixed rate mortgage currently available. Each of the mortgages has a £1,545 fee.

Borrowers with smaller deposits have not been forgotten – the Chelsea also offers a two year fixed rate mortgage at 90% LTV with a best buy rate of 3.69%, and a £1,545 fee. There also is a lower-fee 90% LTV two year fixed rate mortgage at 3.94% with a £745 fee for borrowers wanting to limit their upfront costs.