The Chelsea building society has reduced the rate of both of its two-year fixed rate mortgages.

The first offers an interest rate of 3.75%, fixed until 28 February 2012. After this time the rate will revert to Chelsea’s SVR (currently 5.79%). The overall cost for comparison is 5.6% APR.

The second offers an interest rate of 3.94%, fixed until 28 February 2012. After this time the rate will revert to Chelsea’s SVR. The overall cost for comparison is 5.7% APR. It comes with ‘assisted’ legal fees for re-mortgages (subject to qualifying conditions).

The maximum loan-to-value for both products is 75% and they both come with arrangement fees of £995.

Andy Paddock, Chelsea’s mortgage product manager, said: “We’re delighted to be able to offer these competitive fixed rate deals. These products address the two main needs of borrowers: a good rate and the option of help with those up-front costs.”””