The Cheltenham & Gloucester Building Society has just announced that it will no longer help its existing clients in the current financial crisis. It has said that in future (from two days ago), when an existing client says they want to change from a repayment to an interest only mortgage they will not allow this to happen. Many advisers and commentators have said that this will leave many borrowers unable to help themselves to be responsible by reducing their mortgage payments in their time of need.

We believe this is irresponsible and unfair. Any existing client should be able to benefit from features of their mortgage which were available when they took it out until such time as they move lenders or change deals. To refuse this facility implies that C&G are giving advice, which they are not authorised to do – what is the FSA saying about this? As borrowers reach breaking point with their finances, C&G will be responsible for additional financial hardship to those clients in trouble and for any additional repossessions which may take place.

They have said in their statement that they will assist customers in the best way possible if they are struggling and deal with customers individually – why remove the facility of this is the case, especially if the client has a mortgage adviser who is in a far better position to advise the client than C&G?