Chelsea Building Society is offering new mortgage rates that are set to be a great deal for those looking for long term fixed mortgages. The new mortgage deals start out at 3.19% and will stay at this for five years  and will be particularly beneficial for those who want the security of knowing that their mortgage will not increase over the coming years, despite the shape of the economy.

Outside of credit criteria, the new mortgage deal comes with a 70% LTV and an upfront arrangement fee of £1,495, making it a better choice for those who have equity and want to remortgage their home at a better rate. Finance analyst Andrew Hagger from the website moneynet.co.uk stated that the deal is a great idea for those that plan on borrowing over £117,000 or more because any less and you will be better off borrowing at a slightly higher rate and not paying any arrangement fees.

He mentioned a deal that is being offered by the Co-Operative Bank that comes attached with a 3.59% mortgage rate that doesn’t have a product fee that would be an overall better deal for those with lower borrowing totals. Clare Francis, a financial analyst from MoneySupermarket.com also offered her take on the new best mortgage rates from Chelsea Building Society, stating that the low 3.19% is going to look enticing at first to many first time home buyers because it is a great rate for a fixed mortgage.

She added that the high deposit required for the mortgage will, however, keep many from actually taking advantage of the low mortgage rate.  She added that those that are looking for greater security in the coming months are going to want to take a harder look at the affordability of the mortgage as it may be the best option.

In terms of the market outlook the guide for the mortgage rate, the base rate from the Bank of England has been sitting at 0.5% which is a historic low, since March of 2009.  So long as this rate remains low, and there is not too much more economic turmoil,  then mortgage rates should remain low overall.

Most experts believe that it will stay down over the course of 2012 but that eventually it is going to jump up, which will greatly affect the mortgage market by forcing many homeowners to dig a little deeper into their pockets in order to make housing payments.