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Lender says...

Cheltenham & Gloucester has made changes to its range of fixed rate mortgages. This includes reducing the interest rates on its 60 per cent and 75 per cent loan-to-value fixed rate mortgage range by up to 0.25 per cent and increasing the interest rates on its 90 per cent LTV range by up to 0.34 per cent.

The biggest fall is the two-year fixed rate mortgage that has a minimum amount of £50,000 available and a £250,000 maximum.

This product now has a rate of 5.49 per cent and is available up to 75 per cent LTV. It comes with a £1995 arrangement fee and early repayment charges of 3 per cent in the first year and 2 per cent in the second year.

The five-year fixed rate has also had its rate reduced to 5.59 per cent. This product is available up to 60 per cent LTV and has a £995 arrangement fee. The product has an early repayment charge of 5 per cent in the first two years, 4 per cent in the third, 3 per cent in the fourth year and 2 per cent in the final year.

There is also a two-year fixed rate available up to 90 per cent LTV. This product has had its range increased to 6.69 per cent and has a £995 fee. There is an early repayment charge of 3 per cent in the first year and 2 per cent in the second year.

Adviser says...

Damien Paterson, managing director of Glasgow-based IFA Paterson Financial Planning Ltd, said: "The two-year fixed rate at 5.49 per cent is unlikely to pick up a lot of business because of the high arrangement fee.

"C&G has tailored the products to the low LTV market and while the five-year fixed rate is competitive the actual loan amount is likely to be lower and therefore the fee may also seem high.

"The 90 per cent LTV product is also unlikely to pick up a lot of business as you can get lesser rates elsewhere but C&G is not particularly focusing on this market at the moment."

Rating: 2/5 stars