GE Money Fixed Rate due to end- Help

ljmit

Hiya, I'm new to this so please bear with me. My 3 year fixed rate mortgage with GE is to end in January 2010, looking at my terms and conditions it states that ' after the initial rate the mortgage will be a variable rate which is 1.890 above the Barclays Bank Base rate currently 5.00%' my worry is I've heard lots of bad press about GE Money,if I've read the conditions correct I take it to read 1.890 on top of 0.5 percent which is the currect Barclays Base Rate. This seems too good to me and if right my payments will be greatly reduced. Somehow though I can't beleive it would be this low.

Do you think I've interperated this correct? Can they change my terms and conditions? I can't move mortgage lenders due to changes to circumstances that has made me a less than perfect credit rating.

I'm panicing a little because I've heard and read some terrible reports on GE charging high interest rates, I'm been a very good customer so far and have not missed any payments with them but I'm stuck with them for a good few years yet.

getmore4less

If that is what the contract says that is what it should be.

Trick is to keep the payment the same and overpay.

Or save the money if you get a better rate(after tax) than the mortgage.

happybroker

all of GE Money's rates go to a tracker at the end of the fixed period and if it says 1.89% over then that's what it will be.

To be fair to GE they were one of the most competitively priced providers in that field of lending although fees where high, expecially if you arranged it through their in house "brokerage" GE Money Lending Solutions. The service is chronic though.

If you do leave them don't forget to write and give them 1 months notice of redemption or they will charge you 1 months interest. Send this letter by recorded delivery as they will "lose" it until you give them a track and trace number.

gilligansyle

My fixed rate with GE Money ended and went to the tracker rate and my payments went down by a whopping £242 per mth!


GE don't generally let you overpay though, I think its in the T&C but there's nothing to stop you making one off payments. They can't actually refuse them!

ljmit

I know I must sound a little brain dead but Barclays Base rate does mean the one thats currently 0.5% I'm just worried that GE will mean the 1.590 over the Standard Varible Rate, it doesn't say that in my contract but 2.09 percent interest sounds far too good to be true. If it is correct then I'll be saving the difference to put towards when they go sky high again!

ljmit

Typing ErrorI meant 1.890 not 1.590!!

opinions4u

ljmit wrote: »

I know I must sound a little brain dead but Barclays Base rate does mean the one thats currently 0.5% I'm just worried that GE will mean the 1.590 over the Standard Varible Rate, it doesn't say that in my contract but 2.09 percent interest sounds far too good to be true. If it is correct then I'll be saving the difference to put towards when they go sky high again!

The Barclays base lending rate is different to their SVR and is, as you believe, a mere 0.5%.

This rate, while it remains so low, gives you a fantastic opportunity to pay off/reduce any other debts.

Make it work well for you.

Don't increase your spending with the benefit that it brings. Get your debts down and/or build up a savings pot.

This will help you afford payments as and when interest rates return to a higher level.