View more on these topics

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.

BROKER RATINGS

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

Overall 5/10

Recommended

Call for evidence in FOS probe

The independent review of the Financial Ombudsman Service will investigate if a court-like process for investigating complaints would improve the way that the FOS operates.Lord Hunt of Wirral published his call for evidence this week, outlining the scope of the review, including whether a court-like process would work, whether details of individual cases should be […]

O’Brien bites back at Tory ‘attack dog’

Pensions Minister Mike O’Brien has hit back at Tory Shadow Work and Pensions Secretary Chris Grayling, calling him Cameron’s “attack dog” after Grayling accused the Labour Party of pensions robbery.The Conservatives claim the Chancellor’s move to bring forward his plan to change S2P to a flat rate in 2009 could amount to a £2bn raid […]

Defaqto brews up a special blend

Financial services research group Defaqto has changed the schedule of its quarterly multi-manager guide, Blending Talents, so that the first issue of 2008 will be in time for the Isa season.The fourth Blending Talents was published in September but the fifth issue has been brought forward to mid-November rather than December. This change allows the […]

Risk-free path to pensions is a myth

Robin Geffen, Fund Manager and CEO Are you taking enough risk? Robin Geffen, Founder of Neptune and Manager of the top performing Global Alpha Fund, discusses the importance of accepting enough volatility in planning for retirement. Click here to read the full article Important information Investment risks The value of an investment and any income from […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment