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Lender says...

Cheltenham & Gloucester is offering its All Weather mortgage product for intermediaries.

The C&G All Weather mortgage is available for a three-year deal. It tracks the base rate, allowing customers to take full advantage of any further base rate falls but also giving them the opportunity to lock into any C&G intermediary fixed rate deal at any point, without incurring an early repayment charge.

A three-year tracker is available at 5.99 per cent, 0.99 per cent more than base rate, up to 60 per cent loan-to-value and up to 90 per cent loan-to-value at a rate of 6.99 per cent.

There is an application fee of £99 and a product fee of £995.

Kevin Purvey, head of intermediary sales for C&G, said: "In an uncertain climate the C&G All Weather mortgage gives homeowners more choice.

"Popular with remortgagers coming off low fixed rate deals, it allows them to wait and see what is happening to mortgage rates before fixing into another deal."

Adviser says...

Sarah Smith, mortgage associate for Birmingham-based IFA Money4dentists, said she thought the concept of being able to fix at a later date was a good one but it depended on how competitive the deals were.

She said: "I am sure clients would like the idea and the tracker rates are competitive. However who knows how good the fixed rates will be. It also depends on the fee. You would have to work out whether it would be worth switching to that fixed rate if interest rates started going up again."

Rating: 3/5 stars