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Cheltenham & Gloucester – 5-Year Fixed Rate – C&G Caseflow Exclusive

Cheltenham & Gloucester

5-Year Fixed Rate – C&G Caseflow Exclusive

Type: Fixed-rate mortgage

Fixed term: Until December 31, 2012

Fixed rate: 5.97%

Minimum loan: £25,000

Maximum loan: Up to 90% of valuation subject to a maximum of £1m

Income multiples: Based on affordability

Conditions: Free valuation, free legal fees for standard remortgages of £50,000-£1m if in-house solicitors used, capital repayments of up to 10% a year allowed without penalty

Arrangement fee: £999 plus £99 application fee

Redemption fee: 5% of the amount repaid in year one, 4% in year two, 3% in year three, 2% in year four, 1% in year five

Introducer’s fee: 0.35-0.4% of the original loan

Tel: 01452 373187

This five-year fixed-rate mortgage is available exclusively through C&G’s online mortgage system, Caseflow.

Belgravia Insurance Consultants consultant Paul White likes the flat product fee of £999, rather than the usual fee based on valuation that other lenders apply. “The combination of neither valuation fee, nor legal fees for properties up to £1m is good. The ability to repay 10 per cent of the mortgage is useful, but not an unusual feature in the present market,” he says.

Discussing the less attractive features of this deal White thinks the application fee and the product fee should not both be charged. “However, one would usually expect to pay for a valuation and a product fee, so it still works out cheaper,” he says.

Identifying potential competitors White says: “The Britannia 5.39 per cent five-year fix allows up to 95 per cent loan to valuation with the same product fee, but no application fee. However, higher lending fees apply over 90 per cent,” he says.

White also mentions National Counties 5.49 per cent fixed until January 31, 2013. “This has a lower product fee of £635 and no application fee, although there is a valuation fee to pay,” says White.

Summing up White says: “There are plenty of other cheaper deals available on the market.


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

Overall 5/10


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