libor rate

gosborn

i need advice took out mortgage 4yrs ago due to bad credit could only get libor rate mortgage want to know how to get off as has gone up when all other rates have gone down

luckyfool

Who is the lender, what is the margin above libor, is there a redemption penalty?

gosborn

lender is GE money we are on6.5% redemption ends december this year

luckyfool

Are you sure you are with First National or IGroup (the two GE Money lenders), as far as I am aware none of their deals are linked to Libor, but revert to margins above Barclays Bank Base Rate, which to all intents and purposes is effectively the same as Bank of England Base Rate( corrected : bank of england base rate). Have you checked what your mortgage will revert to direct with the lender, or are you going by your old mortgage offer which may have been based on a much higher base rate?

Depending on your loan to value you may be able to remortgage in December (if so you could start the ball rolling 3 or 4 months sooner).

gosborn

had a look its with IG group and was based at 1.5% above rate when taken(somone else wronly advised me that it must be libor)so when redemption period finishes what sort of rate should we be on?

luckyfool

Could be as little as 2% if base rate is 0.5%, and you are on 1.5% over it.

Call the lender up and double check though.

gosborn

thanks for your advice

inspector_monkfish

gosborn wrote: »

i need advice took out mortgage 4yrs ago due to bad credit could only get libor rate mortgage want to know how to get off as has gone up when all other rates have gone down

LIBOR hasn't gone up for months
who told you it has?

inspector_monkfish

gosborn wrote: »

had a look its with IG group and was based at 1.5% above rate when taken(somone else wronly advised me that it must be libor)so when redemption period finishes what sort of rate should we be on?

oops sorry, should have read rest of thread !!!