Chelsea Building Society

Chelsea Building Society are part of the second largest building society group in the country. Historically they used to lend large volumes on a flexible basis, even specialising in the old self certified and ‘bad credit’ mortgages, which were distributed mainly by brokers. This changed following the credit crisis in 2008, and they now only deal with borrowers directly, with a much more streamlined offering and much less flexibility.

Is a mortgage from Chelsea Building Society suitable for me?

A Chelsea Building Society mortgage is quite difficult to qualify for. In order to work on the annual contract value, the contractor has to be an IT professional, and also have 12 months remaining on the contract. 

For those contractors utilising their own limited company, income is further verified via tax returns over the latest two years. Salary and dividends for the latest two years, plus an accountant’s projection for the third year are used to define income. The contract becomes irrelevant to the lender if any type of self-employment exists.

When would CMME recommend this lender?

At CMME, we have found that the only time we tend to look at Chelsea Building Society currently is when we have existing borrowers. Their rates are not the most competitive, and lending criteria is not very ‘contractor-friendly’ any more. This means there are usually better options elsewhere for financing a property purchase or replacing an existing mortgage for better rates.