Letter from mortgage company I find it strange

savemoney

Just got a letter from mortgage company (GE money)

We were on a fixed deal until March 09 now on a variable rate 1.89% above Barclays base rate

Letter goes on to say that they are new offers on the market and in current economic climate, you should review all your options, even if it means switching from GE money.

It then goes on to say the current deals are rate matcher deals and a range of fixed rates and trackers

And how to find a best deal go to uswitch, moneyfacts, monysupermarket and moneysavingexpert

I just found it strange as if they are wanted rid of customers but not saying it directly

opinions4u

savemoney wrote: »

We were on a fixed deal until March 09 now on a variable rate 1.89% above Barclays base rate

It's a good rate. Consider keeping it and staying put.

I just found it strange as if they are wanted rid of customers but not saying it directly

It's called the Credit Crunch. Those who provide GE with the funds to lend to you for your mortgage are, in many cases, not extending their commitment.

GE, knowing that their funding may run out, are trying to encourage customers to move their mortgages away in order to balance the books.

Some lenders are even paying customers to go! One poster on these boards reported £25k being knocked off their settlement figure to move to another lender.

dunstonh

I just found it strange as if they are wanted rid of customers but not saying it directly

Not really. GE Money tended to deal with higher risk lending (some exceptions). So, if they want to reduce their risks then the best way to do that is encourage people to leave.

Some of the high risk lenders are giving incentives to leave (as opinions4u highlights above).

If they have borrowed the money themselves to lend to you then they may be finding that they are unable to negotiate terms themselves that are attractive as their mortgage book is low quality. So, getting rid of the mortgage book is a priority to some.

savemoney

we shouldn't have a bad credit rating we only owe mortgage money and never been a bad debt, rarely used credit cards now and always pay then back. Had a mortgage now for 19 years and never once defaulted only thing going against us is we are on a low income now.

I did hear that some lenders are paying people off, thats why I am wondering whether they want rid of us

I was looking for another deal probably a fixed deal but I find it bewildering the amount of deals and the fees given we only owe 48k on a 150k house and now have less than 18 years left

happybroker

GE Money are self funding (being part of the worlds largest corporation) and don't securitise (sell mortgages on). They are, however, actively encouraging people to leave them. Even if you are tied in on a fixed rate or similar they will, if you ask, waive your early repayment charge.

If you do decide to leave them be aware that unless you give them 1 months notice in writing they will charge you an extra months interest when you repay the debt. Send this by recorded delivery, they will lose the letter, they always do, but amazingly when you give them the tracking number it reappears.....wonderful!

savemoney

Thanks for the tip

I am not on a fixed now so i think only clause is some notice, I am in no rush to leave but obviously dont waat interest rates to go up, the thing that puts me off is the fees especially for a fixed mortgage.

I believe GE money is now owned be setanta

happybroker wrote: »

GE Money are self funding (being part of the worlds largest corporation) and don't securitise (sell mortgages on). They are, however, actively encouraging people to leave them. Even if you are tied in on a fixed rate or similar they will, if you ask, waive your early repayment charge.

If you do decide to leave them be aware that unless you give them 1 months notice in writing they will charge you an extra months interest when you repay the debt. Send this by recorded delivery, they will lose the letter, they always do, but amazingly when you give them the tracking number it reappears.....wonderful!