C&G latest lender to raise fixed rates

  • Story by: David Pawsey
  • Magazine: MortgageAdviser
  • Published Wednesday , June 18, 2008

Cheltenham & Gloucester (C&G) has announced it is withdrawing its mainstream fixed rate mortgage range for repricing at the close of business tomorrow (14 June).

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The lender said a newly re-priced range would be available on Monday 16 June.

Cheltenham & Gloucester said it was increasing the price of its fixed rates by 30 basis points and this was in response to the recent increase in swap rates.

Eleanor Ross, media relations manager for Cheltenham & Gloucester, said: "This is in direct response to swap rates going up.

"If you look at the last 24 hours, two-year swaps have gone up by 21 basis points alone, and they are at 6.53 per cent, so we have had to react to that."

The announcement follows that of several other lenders, including RBS Intermediary Partners which raised the rates on a number of its fixed rate range this morning (13 June). (See story.)

Lenders have also been facing the heat over the rising cost of various fixed-rate deals.

Research by MoneyExpert.com revealed earlier this week that application fees for fixed rate have rocketed, with the number of fixed rate mortgage products charging application fees of more than £750 increasing by 14 times in the past 18 months. (See story.)

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