Mortgage

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Simbel
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by Simbel » Thu Jan 21, 2010 2:55 pm
I'm getting myself into a little bit of a flap and wonder if anyone can answer this question. I came off a fixed mortgage in October 2008 and on to variable, on the fixed I was paying 6.5% interest rate (i'm now paying 3%) - my mortgage lender is GE Money mortgages and on my key facts sheet it states that i should pay 2.5% above barclays bank base rate - which is the same as BOE base rate. My question is can they change the variable rate of people like me or it is only to people coming off fixed rate mortgages now and new clients.

Thanks in advance.

 

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Michael Peoples
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by Michael Peoples » Thu Jan 21, 2010 4:08 pm
It is unlikely that they can change the rate and you will remain at 2.5% above the BBL. Once rates start to increase you could consider opting for a fixed deal or if you wanted peace of mind GE may offer you a fix now albeit at a higher rate than 3%. It would be worth speaking to a financial advisor if you are concerned but personally I would stay where I was.

 

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Simbel
Posts: 348
by Simbel » Thu Jan 21, 2010 4:30 pm
Thanks Michael, I think I will take your advice and stick it out for as long as we can at the 3% - if i was to go fixed now with them they would probably put me on a rate we couldn't possibly afford anyway, therefore our only option is to stick it out, hopefully when interest rates start to rise they will rise slowly as predicted over the next couple of years, then i will try and go interest only otherwise don't think we can keep the house (I don't know how they are about changing people to interest only option).
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