The Cheltenham and Gloucester Building Society

The Cheltenham and Gloucester Building Society was founded in 1850. In 1995 its members decided to convert from a mutual society to a plc and became part of the Lloyds Bank Group, thus triggering further deals throughout the market. Although Abbey National had converted and floated on the Stock Exchange six years earlier, it was C&G's conversion that provided the catalyst for a series of demutualisations and acquisitions that took place over the next two years - with Halifax, Woolwich, Northern Rock and Bristol & West all switching from building society status.

The C&G's conversion had a liberating aftermath on the lending market, and it also meant that each member received a cash windfall. Within a few months, C&G was selling its mortgages through every Lloyds branch in the UK, giving it the biggest distribution network of any lender. When Lloyds merged with TSB a few months later, C&G started selling its products through their branches as well, making C&G the UK's third-largest mortgage lender.

C&G offer these type of mortgages:

• Fixed Rate
• Tracker
• C&G Offset
• Standard Variable Rate
• Additional Loans
• First Time Buyer
• Buy to Let

Fixed rate: you can choose to fix your mortgage rate for an agreed period depending upon which product you select. Choices are from 2 to 7 years. After the fixed period has concluded the mortgage will go back to the C&G's standard variable rate.

• Early repayment charges apply

Tracker: these mortgages change according to the Bank of England base rate. The tracker rate is set at a certain percentage above the Bank of England base rate. This over all rate will depend upon on the size of your loan. The tracker rate applies for four years of the mortgage, after which it reverts to the C&G's standard variable rate.

C&G and Lloyds TSB also provide offset mortgages: this gives you the prospect of cutting the cost of your mortgage and the potential to pay it off years early. You run your mortgage alongside your Lloyds TSB current and savings account, or alongside a C&G savings account.

• Money in your accounts contributes in dropping your mortgage balance and you only pay interest on the difference between the two. This could mean your mortgage will cost you less.
• You could pay off your mortgage faster and save money while you still have the same access to your money.

Standard Variable Rate: the interest on this product is set at a certain percentage above the Bank of England base rate. This means it will vary according if rates rise or fall.

• There are no early repayment charges
• No Valuation fees apply

Additional Loans: generally you can take out a loan at the C&G's standard variable rate. Loans are in the range of £5000 - £24,999. For loans higher than this you can apply for a homeowner loan or to re-mortgage.

Buy to Let: 50% of the rental income of the property sought is considered to work out how much C&G can lend you.

First Time Buyer mortgage: the rates for this mortgage are 'stepped' over 3 years; they start low and go up after each year.

• Only available for First Time Buyers
• No admin fees apply

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