Can anybody help me?

yummymummy1983

I bought a house just over 2 years ago on a fixed 2 year interest only deal with GE Money. This expired in October and they offered me a new deal, fixed for a year (this was after the first Bank of England rate reduction) I accepted even though it meant I was paying an extra £66 a month. Two weeks later I received a letter from them stating that due to the second bank of England base rate cut they would be reducing my monthly payments, they said that there was no need for me to do anything, they would just adjust my account accordingly. When I noticed that I was still paying the higher rate, I contacted them to be told that the letter was sent in error. I have written to them twice now and they are not willing to accept any responsibility for this and are refusing to reduce my payments. Does anyone know if there is anything I can do. The difference in the two amounts is £125 a month, which I don't want to be paying them.
Any advice would be greatly appreciated.

dunstonh

The letter was probably sent during the transition of the changeover from variable to fixed rate.

As you are on the product you asked to be on I dont see why they should change it.

dimbo61

Well the good news is that you only took out a 1 year fix which ends in october !
You need to read very carefully what happens to your mortgage at the end of the fix.
Does it state that the mortgage reverts to the lenders SVR which is currently ( say 5.5% in october 2008)
Check with your lender what there current SVR is !!!
You are on interest only and bought 2 1/2 years ago at the top of the market so you may be in negative equity and stuck with your existing lender on the SVR.

Dan_1976

Yummymummy is it possible that they were refering to the SVR and that your future payment may go down?

If its an error I dont think you have much to go buy, sorry that not much help but I cant ignore a call from a yummy mummy!