Cheltenham & Gloucester
Encyclopedia
Cheltenham & Gloucester plc (C&G) is a mortgage and savings provider in the United Kingdom
, a subsidiary of Lloyds Banking Group
. C&G specialises in mortgages and savings products. Previously, C&G was a building society
, known as the Cheltenham and Gloucester Building Society. C&G is one of the largest mortgage lenders in the UK. Its headquarters is in Barnwood
, Gloucester
, Gloucestershire
, England
.
, its first Gloucester
branch opening in 1896. Over the next 80 years, it expanded throughout the UK, opening its 100th branch in Pershore
in 1979. Throughout the 1980s, C&G acquired several smaller building societies, as consolidation of the sector intensified.
In 1997, C&G agreed to a takeover approach from Lloyds Bank
. This involved the demutualisation of the society, and generated a windfall payment to its members.
Today, C&G mortgages are designed, marketed, sold and administered by Cheltenham & Gloucester plc, while Lloyds TSB Bank is the lender for C&G mortgages. On the savings side, C&G Savings is a division of Lloyds TSB Bank plc.
Speculation has since arisen that Lloyds may sell off C&G, after the European Commission
demanded in late 2009 that both it and Royal Bank of Scotland sell off existing branches in order to safeguard competition concerns, following their respective bail-outs by the UK government.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, a subsidiary of Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
. C&G specialises in mortgages and savings products. Previously, C&G was a building society
Building society
A building society is a financial institution owned by its members as a mutual organization. Building societies offer banking and related financial services, especially mortgage lending. These institutions are found in the United Kingdom and several other countries.The term "building society"...
, known as the Cheltenham and Gloucester Building Society. C&G is one of the largest mortgage lenders in the UK. Its headquarters is in Barnwood
Barnwood
Barnwood, in Gloucestershire, England is situated on the old Roman road that connects the City of Gloucester with Hucclecote, Brockworth and Cirencester....
, Gloucester
Gloucester
Gloucester is a city, district and county town of Gloucestershire in the South West region of England. Gloucester lies close to the Welsh border, and on the River Severn, approximately north-east of Bristol, and south-southwest of Birmingham....
, Gloucestershire
Gloucestershire
Gloucestershire is a county in South West England. The county comprises part of the Cotswold Hills, part of the flat fertile valley of the River Severn, and the entire Forest of Dean....
, England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
.
History
C&G can trace its roots back to the Cheltenham & Gloucestershire Permanent Mutual Benefit Building and Investment Association in 1850. At first the Society was based in CheltenhamCheltenham
Cheltenham , also known as Cheltenham Spa, is a large spa town and borough in Gloucestershire, on the edge of the Cotswolds in the South-West region of England. It is the home of the flagship race of British steeplechase horse racing, the Gold Cup, the main event of the Cheltenham Festival held...
, its first Gloucester
Gloucester
Gloucester is a city, district and county town of Gloucestershire in the South West region of England. Gloucester lies close to the Welsh border, and on the River Severn, approximately north-east of Bristol, and south-southwest of Birmingham....
branch opening in 1896. Over the next 80 years, it expanded throughout the UK, opening its 100th branch in Pershore
Pershore
Pershore is a market town in Worcestershire, England, on the banks of the River Avon. Pershore is in the Wychavon district and is part of the West Worcestershire parliamentary constituency. At the 2001 census the population was 7,304...
in 1979. Throughout the 1980s, C&G acquired several smaller building societies, as consolidation of the sector intensified.
In 1997, C&G agreed to a takeover approach from Lloyds Bank
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...
. This involved the demutualisation of the society, and generated a windfall payment to its members.
Today, C&G mortgages are designed, marketed, sold and administered by Cheltenham & Gloucester plc, while Lloyds TSB Bank is the lender for C&G mortgages. On the savings side, C&G Savings is a division of Lloyds TSB Bank plc.
Planned closure of branches
On 9 June 2009, it was reported that Lloyds Banking Group were to close Cheltenham & Gloucester's 164 branches in November of that year, at the cost of around 1,660 jobs. Lloyds stated that the C&G brand name would be retained for mortgages and savings, while customers could use any branch of Lloyds TSB to access their accounts. However, on 19 August 2009, Lloyds announced that it was to review this decision.Speculation has since arisen that Lloyds may sell off C&G, after the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
demanded in late 2009 that both it and Royal Bank of Scotland sell off existing branches in order to safeguard competition concerns, following their respective bail-outs by the UK government.
See also
- Mortgage loanMortgage loanA mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
- Fixed rate mortgageFixed rate mortgageA fixed-rate mortgage is a mortgage loan first developed by the Federal Housing Administration where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float." Other forms of mortgage loan include interest only...
- Buy to letBuy to letBuy-to-let is a British phrase referring to the purchase of a property specifically to let out. A buy to let mortgage is a mortgage specifically designed for this purpose....
- First time buyerFirst time buyerA first-time buyer is a term used in the British and Irish property markets, and in other countries, for a potential house buyer who has not previously owned a property....
- RemortgageRemortgageA remortgage is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security. The term is mainly used commercially in the angla saxon countries such as the United Kingdom and the United States , though what it describes is not unique to any one...
- Financial Services AuthorityFinancial Services AuthorityThe Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...