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Cheltenham & Gloucester

Tracker

www.cheltglos.co.uk

Lender says...

Cheltenham & Gloucester has launched a tracker product that allows uncertain homebuyers and remortgagers to wait and see what happens to interest rates in the coming months.

The C&G All-Weather mortgage tracks the base rate, allowing customers to take advantage of any further base rate falls. It also allows customers to lock into any C&G fixed rate deal at any point, without incurring an early repayment charge or completing new paperwork.

The product is available as a two-year or five-year tracker and tracks at 0.59 per cent above the base rate, giving a current rate of 5.84 per cent. There is no product fee attached to the mortgage but customers have to pay a £99 application fee.

For the two-year tracker there is an early repayment charge of 3 per cent in the first year and 2 per cent in the second year if the borrower switches to an alternative lender.

The five-year tracker carries an ERC of 3 per cent in the first year, 2 per cent in the second and third year and 1 per cent in the fourth and fifth year.

Stephen Noakes, marketing director of C&G, said: "Since the last base rate cut we have reached a crossroads in the economy where even the experts do not agree when base rates will bottom out.

"The C&G All-Weather mortgage gives customers the best of both worlds; the confidence to take a tracker with the knowledge they can fix at any time with no extra cost and with no extra paperwork."

Adviser says...

Daniel Clayden, director of Devon-based IFA Clayden Associates, said he thought the product was interesting but it did not leap out at him as being overly competitive.

He said: "It is not a market leader but it is not priced way over the top. The best trackers available at the moment seem to be around 0.49 per cent above base rate.

"However the low fee could be an incentive. It is clever giving the option to switch to a fixed rate without penalty. It will entice new clients and also help to retain existing customers.

"It might be suitable for some borrowers but I do not think I will have clients banging down my door."

Rating: HHH

CHL Mortgages

Buy-to-let fixed and tracker

www.chlmortgages.co.uk.

Lender says...

CHL Mortgages has launched a new range of buy-to-let products. A fixed rate is available at 5.45 per cent up to 70 per cent loan-to-value. The rate is fixed until 31 December 2010 when it reverts to 1.34 per cent above the Bank of England base rate.

There is a completion fee of £1999 and the product requires 115 per cent rental cover. There is a free valuation for properties valued up to £500,000. Also available is a product that tracks at 0.34 per cent above the base rate, giving a current rate of 5.59 per cent, until 31 December 2010 when it reverts to 1.85 per cent above the base rate. This product is also available up to 70 per cent LTV.

There is a completion fee of £1999 and the product requires 115 per cent rental cover. There is a free valuation for properties valued at £500,000 or more.

Adviser says...

Michael Brill, director of Essex-based IFA Baronworth, said he thought the fixed rate product was quite competitive but he was not so sure about the tracker.

He said: "The fixed rate is reasonably competitive but it would depend on the size of the mortgage due to the cost of the fee. I would certainly consider this for a client. The tracker is not particularly competitive. Cheltenham & Gloucester has a tracker that goes up to 85 per cent loan LTV at 4.74 per cent."

Rating: HHH

Co-operative Bank

Fixed rate

www.co-operativebank.co.uk

Lender says...

Co-operative Bank has waived application fees on its fixed rate mortgage range for a limited period. A two-year fixed rate product is available at a rate of 5.79 per cent. It is fixed until 28 February 2010 when it reverts to Co-op's standard variable rate, which is currently 7.24 per cent. This product is available up to 90 per cent loan-to-value for a maximum loan amount of £500,000. Also available is a three-year fixed rate, specifically for first-time buyers, at 5.94 per cent. This is available at up to 95 per cent LTV for amounts up to £300,000. Fixed rate products will not be available through intermediary channels while fee free products are being offered by the Co-op.

John Barker, head of mortgages for Co-operative Financial Services, said: "These changes make our fixed rate range even more competitive against other fee-free deals in the market and we expect that there will be a high level of demand."

Adviser says...

John Stewart, director for Essex-based PMI Independent Financial Advisers Ltd, said both products sounded competitive.

He said: "They sound pretty good, particularly for first-time buyers. Obviously you have to take into consideration the service levels and how flexible they are on criteria but as a product it sounds OK. It is a shame they are not offering them to advisers."

Rating: HHH

The Mortgage Works

Buy-to-let

www.themortgageworks.co.uk

Lender says...

The Mortgage Works has launched a new range of buy-to-let and self-cert products including a 15-year fixed rate buy-to-let mortgage.

The product is available for purchase and remortgage with rates starting from 5.99 per cent. The product has no arrangement fee and a maximum loan-to-value of 85 per cent.

The rental calculation is based on pay rate times 110 per cent. There is an early repayment charge of 7 per cent until 30 June 2016 and then 5 per cent until 30 June 2023.

Andy McQueen, managing director of The Mortgage Works, said: "Following the success of our 10-year fixed rate product range it became apparent there was demand among landlords for longer-term payment security.

"To give these customers even more options, we are delighted to be able to launch a 15-year product at the same rate as our 10-year offering."

Adviser says...

Phil Perry, director of Cheshire-based IFA Ark Financial Planning, said: "A lot of investors keep their properties for a considerable length of time and the 5.99 per cent rate is quite competitive. The 85 per cent LTV is pretty much what you would expect and the fact that it has no fees will appeal to anyone.

"However the penalties and the long term may not have appeal for some. I would suggest this would be of interest to the serious investor."

Rating: HHH