A Good Choice (Cheltenham & Gloucester)

Member Name: sue.51

Product:	Cheltenham & Gloucester
Date:	28/03/01 (234 review reads)
Rating:

Advantages: Good friendly service, no MIG

Disadvantages: None that I am aware of

When I bought my first home, C&G were one of the few lenders who accepted 'vendor deposit' paid, thus allowing me to get a step on the property ladder. (I believe they have now stopped this). It is a good idea when considering a mortgage to use a financial adviser or broker, who can search through a list of available lenders, taking into consideration all the borrowers personal circumstances and financial circumstances, and viewing the vast arraye of special rates and introductory offers available from all the high street& specialist lenders. Using this route also prevents the borrower from making a number of applications, and thus ending up with numerous credit searches on their file. They can often obtain a AIP, Agreement in Principle from a lender on your behalf.

I have now had two mortgages with C&G, and whilst they may not have the most competitive rate on the market, they gave me the option of freezing my fixed rate (6.19%) upon expiry until the end of the financial year, which was very useful as I had just moved house, any monies accrued during this period were added on to outstanding balance. (current standard rate 7.5%).

They do not charge any penalties if you move house, providing you retain your original mortgage and are either borrowing the same sum or extending the loan. If you are going to be borrowing less, there is usually penalties incurred on the difference where relevant. (I believe their policy on penalties may now have changed, and it would be worth checking to see what their latest rules & offers are).

My initial application was made through a financial adviser who completed the application forms on my behalf, and did not charge for this service, although he did sell me a life insurance policy. The process was speedy, hassle free and the staff at C & G were very helpful and accommodating; unlike a number of other high-street lenders, C&G do not charge a MIG premium, a charge that is normally added onto mor
tgages where the LTV is greater than 75%. This makes a big saving, at a very expensive time, particularly if you are a first-time buyer.

The C & G mortgage can be arranged through any of their branches, or through any Lloyds TSB Branch (parent company), their customer service centre, or 'on-line', where an Agreement in Principal (AIP) can be obtained. An AIP is a very useful tool, as knowing you have a certain amount of money available to spend, can put you in a very pwoerful position when chasing an available property, particularly if there are other potential buyers interested.

The website (www.cheltglos.co.uk) is user friendly, and offers a comprehensive breakdown of the products available, mortgage repayment calculators; one showing the benefits and financial savings on a flexible mortgage, graphically illustrated, not to everyone's taste, and also a standard mortgage repayment calculator, where you can identify the type of mortgage required, i.e. interest only or repayment, the amount you want to borrow, the rate you wish to take advantage of and the number of years you wish to repay the sum over. This figure is for indication purposes only, don't forget if you are taking out a mortgage for the first time, there is buildings and content insurance costs to add on top.

No Bank/Building Society will lend you money, unless you can prove that you have buildings insurance in place. This can be arranged through the C&G, although I am not sure how competitive their rates are, I know that many banks have been criticised for overcharging customers.

If you are an existing C&G Customer, new borrowings are treated as being on a 10% deposit basis (as at 03/2000), even if you pay less, thus allowing you to take advantage of bigger cashback offers and more preferential rates. C&G are not often identified as a lender offering superior rates to their customers, but their service, combined with their lack of MIG premiums cer
tainly make worth more than a second glance.

You should have life cover, in case the unthinkable happens, and it is also wise to consider some form of redundancy/sickness/critical illness cover just in case your cirumstances change; this can also be arranged through the lender, or your financial advisor (This is where they make their money selling policies).

Summary: