C&G cuts fix and cap rates

Cheltenham & Gloucester is cutting rates on its capped and fixed-rate mortgages by 0.2 per cent across the board.

The rates are available to new customers and existing borrowers paying the bank&#39s variable rate of 7.5 per cent.

Borrowers can fix their mortgage for two, three or five years at rates of either 5.79 per cent or 6.19 per cent, depending on the amount borrowed and the size of the deposit.

Redemption penalties are restricted to the fixed-rate period and decrease year on year until the loan reverts to C&G&#39s variable rate.

Capped rates are available at either 5.99 per cent or 6.39 per cent and have the same conditions as the fixed-rate products but come with extended redemption charges.

Sales director Nick Hales says: “A reduction in the cost of money-market funding has enabled us to reduce our rates across the fixed and capped range. There are no smoke and mirrors here, it is a straightforward cut offering some attractive rates.”