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C&G offers exclusive fix

Cheltenham & Gloucester

Two Year Fixed Rate Mortgage

Type: Fixed-rate mortgage

Fixed term: Until October 31, 2008

Fixed rate: 4.85%

Minimum loan: £100,000

Maximum loan: Up to 90% of valuation subject to a maximum of £1.5m

Income multiples: Based on affordability

Conditions: Free legal fees on remortages if C&G’s nominated solicitors used

Arrangement fee: £799

Redemption fee: 2% of the amount repaid in year one, 1% in year two

Introducer’s fee: Up to 0.35% of the original loan

Tel: 01452 373187

London & Country mortgage specialist James Cotton says: “C&G’s new IFA exclusives include fixed rates over two, three and five years, which range from 4.85 per cent to 5.09 per cent. All three deals are available for purchases and remortgages and carry arrangement fees of £799. Across the range, there is a minimum loan size of £100,000 and a maximum loan to value of 90 per cent.”

Cotton focuses on the two-year rate, which is fixed at 4.85 per cent until October 31, 2008 and has early repayment charges during this period. He likes the fact that borrowers have the ability to overpay by up to 10 per cent a year without penalty. “What is particularly attractive is the offer of a free valuation and free legal work for remortgages,” says Cotton.

Cotton feels there is little to dislike about this deal. He says: “This is a good deal with a competitive rate and features you would expect. The £799 fee is high, but it is on a par with similar deals. As always, its suitability compared with higher rate/lower fee deals will come down to loan size.”

Scanning the market for potential competitors Cotton says: “With this deal, C&G has put itself at the top of the two-year fixed market, which is always strongly contested. As is often the case in this sector, there are some good direct-only deals that offer strong competition – currently from the likes of Yorkshire and Newcastle. Nationwide and First Active are offering the closest competition for remortgage business.”

With the way the money markets are looking at the moment, Cotton concludes that competition will also come from longer-term fixed rates.


Suitability to market: Good
Competitiveness of rate: Good
Flexibility: Average
Adviser remuneration: Good

Overall 8/10


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