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Posted on October 3, 2007 by Javier Melendez | Posted under Finance
The Story of the Cheltenham and Gloucester Building Society
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In these times, many mutual building societies would close when their original members had met their goal - owning a home. In contrast, the C&G became a permanent building society, accepting new members in order to help them to achieve the goal of house ownership also. The Cheltenham & Gloucester stayed in this vein for a hundred and fifty years before it demutualized in 1995. The Cheltenham & Gloucester became a company of the Lloyds TSB Group, giving windfalls to its stakeholders and opening up a new stream of sales. It took a matter of months for C&G mortgage schemes to be available in every branch of LloydsTSB in the whole of the United Kingdom. Cheltenham & Gloucester Remortgages and Mortgages As mentioned before, the C&G concentrates foremost on remortgage, savings and mortgage products. C&G mortgage loans are available to people who are seeking a new residence, as well as those who currently have a agreement with another lender and are looking to switch. You can obtain a C&G mortage at a fixed or variable rate; according to your financial situation. Fixed rate mortgages allow you to keep the same rate of interest for 7 years, regardless of the general decreases in interest rates. This gives you a static of the terms of the fixed rate. Tracker mortgages follow the decreases in interest rates, allowing you to possibly pay less over the term. In both cases, you can borrow between £25,000 and a £1m, depending on your financial situation and needs. Existing members of the company can get a Cheltenham and Gloucester remortgage, exchanging their current deal to fit their new situation. Members can select to borrow a larger amount, or, if their current mortgage program is about to end, find a C&G remortgage that's more flexible for them. Members in this situation should speak to the company and talk about their needs with a representative from the building society. When the new program is chosen, C&G remortgages can come into effect as soon as the old scheme is stopped. The Cheltenham & Gloucester Building Society also offers specialised mortgages for people buying a property to let. C&G's buy-to-let mortgage empowers customers to borrow an upper limit of 85% of the property's value. This amount drops to sixty five percent in the case of new build appartments. Any one customer may have as much as 9 buy-to-let C&G mortgage loans. Having said this, the total permitted loan amount is £5 million. To qualify for this flavour of C&G mortgage, you should have earnings of at least £25,000 per annum in non rental income, your property has to be professionally managed, and the property must be in a good state of repair without being divided into separate living units. 50% of your income from rent can be also used to see how much you may borrow. About The Author: Javier Melendez has written for a number of UK finance websites such as the Loan-Seeker.co.uk website. His recent articles include reviews of the Cheltenham and Gloucester mortgages. |
Tags: MORTGAGE, REMORTGAGE, LOANS, LENDERS, BORROWING, FINANCE
