A Customer Focused Lender (Cheltenham & Gloucester)

Member Name: Amyrlin

Product:	Cheltenham & Gloucester
Date:	05/08/00 (207 review reads)
Rating:

Advantages: No indemnity fees

Disadvantages: not very good at unusual circumstances lending

Cheltenham and Gloucester are part of the Lloyds TSB group and provide good quality no ties mortgages. There terms and conditions for the granting of mortgages, such as income multiples and credit history, are rather standard. However, it is in other respects that this mortgage provider stands out from the rest.

Firstly it is standard practice on many mortgages where a loan exceeds either 70% or 75% of the value of the property being bought for an 'indemnity policy' to be required, this is an insurance policy for the lender that their costs will be covered should they ever need to repossess the house, and to cover the losses if the house is sold for less than the loan amount if it is repossessed. It does not protect the purchaser in any way. Cheltenham and Gloucester do not require an indemnity policy, this itself can save a mortgage (the person who has the mortgage) thousands of pounds. This saving may not be immediately noticeable as it was traditionally added onto the loan, but in the long term it is potentially a big saving.

A second advantage is that this lender is also a lot more flexible on the way the mortgage is repaid allowing greater flexibility and buyer choice, without pressure, as to what way is best from them, and if it is by an endowment what company to use. In theory it is possible to have a great deal of choice of an endowment provider, but in practice there is often pressure applied to encourage you to go to a specific assurance company.

Generally a good lender, with a good customer service division

Summary: