Cheltenham & Gloucester's cuts high loan to value range

Grovelawn Financial News 29/02/2008

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C&G to concentrate on their core business

Cheltenham & Gloucester has announced they are about to cut the maximum loan-to-value on its products back to 90 per cent. C&G claim that they are acting in a prudent manner and that the ranges they had withdrawn form only a small cluster of products. C&G will now switch their focus onto their core business. C&G are just one of the lenders that have come under fire from brokers at the moment for withdrawing products with very little notice causing problems with borrowers who think they have secured a rate. Withdrawn ranges include a 1.5, two, three and five-year fixed rate option, two-year and full-term tracker rates, two-year tracker rate plus and five-year fixed rate plus - all with LTVs at 95 per cent or above.

Recently, intermediaries have voiced their concern that although they have to prove they are treating their customers fairly, it was becoming increasingly difficult to follow the guidelines set out by the Financial Services Authority when lenders withdrew products so swiftly and often overnight with no warning at all.

← Buy to lets rise | News For February 2008 | Bank shares the way to riches →

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