Cheltenham & Gloucester Tracker Rate Mortgage comes up trumps!

Cheltenham & Gloucester Tracker Rate Mortgage comes up trumps

A few weeks ago I was talking with another client who had a tracker rate mortgage with the Cheltenham & Gloucester. She told me that her tracker mortgage which I had arranged for her on a 1.01% below the base rate had reduced her monthly payments down to 25pence a month on a fairly substantial mortgage. I enquired why she was paying 25 pence a months as I reckoned that the C&G owed her money.

Apparently Cheltenham & Gloucester have problems with their computers. Their computers don’t understand how to pay my client 0.51% interest a month. C&G have said that they will not send clients any money each month but will look at reducing the mortgage balance by what they owe. This is a real money saving bonanza and what a coupe degras!

This situation is totally unprecedented; computer systems were never designed to pay a mortgage borrower. The best money saving advice to give a mortgage borrower in these circumstances is to tell them to pay off their credit card debts first then consider any other personal loan debts. Once you have cleared all your high costing debts then start overpaying your mortgage, especially when saving rates are at less than 1% a year as they are at present.

Two things will happen when you start to overpay your mortgage. The first is that your mortgage balance will start to reduce and the second benefit will be that you will start reducing your mortgage term. By reducing the mortgage term you will save hundreds if not thousands of pounds in interest payments that you would have made had you not overpaid your mortgage. This is mortgage utopia!

If you are confused about what to do with your mortgage in these exceptional circumstances of low interest rates. Then you should find a personal mortgage adviser for professional mortgage advice. For the best remortgage deal always use a mortgage adviser who has access to the ‘whole of the mortgage market’

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Tags: cheltenham 038 gloucester tracker rate mortgage comes up trumps, credit card debts, debts, gloucester tracker rate, Mortgage, mortgage advice, Mortgage Adviser, professional mortgage advice, rate mortgage, tracker rate mortgage

This entry was posted on April 3, 2009 at 3:44 pm and is filed under Advice and Information, Credit Crunch, Interest Rates, Mortgage Market, Remortgaging in todays market. You can follow any responses to this entry through the RSS 2.0 feed.

10 Responses to Cheltenham & Gloucester Tracker Rate Mortgage comes up trumps!

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