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War forces C&G to raise rates on fixed and capped homeloans

Cheltenham & Gloucester is raising the rates on its range of fixed and capped mortgages due to changes in world money markets resulting from the Iraq war.

The one-year offer has been withdrawn and each of the two, three, five and seven-year offers have been repriced.

Borrowers choice of fixed rates is now: two years at 4.59 per cent up to 90 per cent loan to value – up from the previous rate of 3.99 per cent; three years at 4.89 per cent up to 90 per cent LTV – previously 4.29 per cent; five years at 5.19 per cent up to 90 per cent LTV – up from 4.59 per cent and seven years at 5.39 per cent up to 90 per cent LTV – up from 5.69 per cent.

The four-year capped rate rises to 4.99 per cent up to 90 per cent LTV, a rise from 4.59 per cent.

Redemption penalties are restricted to the fixed and capped periods.

C&G says its rates are always under view and liable to change again if the markets improve.

Spokesman Susan Knight says: “Due to changes in the money markets, purchasing funds has become more expensive and we have been forced to withdraw the original offer.”

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