by Mark Johnston
The Cheltenham and Gloucester Building Society dates back to 1850, its safe to say that during their 150 years of history they have a built up a fair amount of knowledge and expertise on mortgages. Having over 1.3 million hours of expertise must count for something in these difficult times, surely they know a thing or two about assisting their customers find the right mortgage.
Cheltenham and Gloucester joined the Lloyds Bank Group back in 1995 and have never looked back but have managed to retain their traditional values out outlook. C&G have always had big ambitions and are now the third largest mortgage lender in the United Kingdom.
Their mortgage range has been designed to suit most borrowing needs without been confusing or adopting a one size fits all approach. Cheltenham and Gloucester leverage being part of the Lloyds banking group by using their expertise in home lending with the resources and span of their big brother.
C&G’s best fixed rate mortgage is 3.39% for a 2 year term but requires a 25% deposit as the loan to value is 75%. The arrangement fee is £1395 and the overall cost for comparison is 4.10% APR.
First time buyers will smaller deposits could look at their 6.99% fixed rate mortgages as it has a 90% loan to value so only requires a 10% mortgages. Although this may suit a first time buyer there as certainly better deal to be had.
Those looking for fix their mortgage over the longer period might be interested in Cheltenham and Gloucester’s 5 year fixed rate mortgage at 4.79% with an arrangement fee of £895 or £5.09% if borrower don’t want to pay a fee.
Although Cheltenham and Gloucester’s fixed rate mortgages might not be the cheapest on the market they certainly hold their own in the tracker range.
Their cheapest tracker mortgage works out at 1.99% for the next two years which tracks the Bank of England base rate of 0.5%. Loan to value is 75% so those looking to borrow £100,000 would need to find a £25,000 deposit. The great news is that C&G aren’t charging an arrangement fee.
Those looking to re-mortgage may be interested in Cheltenham and Gloucester’s 5 year fixed rate mortgage which is currently 4.69% (APR 4.5%) with a £895 arrangement fee. Maximum loan to value is 75% so re-mortgage customer would need a fair amount of equity in their home. Those looking to borrow £140,000 over a 20 year period would be looking at a monthly repayment of around £910 fixed for the next 5 years. Nearly £550 of this would be interest so its worth comparing it with a tracker mortgage to see the price difference.
The best tracker mortgage for those looking to re-mortgage is the 1.99% 2 year tracker. Borrowing the same amount of £140,000 across the same period (20 years) the monthly repayment would be £712. Although this is cheaper its worth remembering that an increase in the Bank of England rate would push the price up. The Base Rate would have to go above 3.2% in the next 5 years for the fixed rate mortgage to be worth its weight in gold.
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