Interest rate increase

[vejo]

I have a mortgage with GE Mortgages of 130k taken out in 2004.The first three years were fixed at 6.50%. Only today we received written notice that the three years had expired in September 2007 and that we had positively benefitted as GE had absorbed the impact of this delay in notifying us. The downside of all this is that from April 2009 our interest rate will be 8.24% an increase of allmost 2% from the fixed rate.
On reading the conditions of the loan and from what I can recall we were to be offered a new product after the three years had elapsed. The loan is up to date and I have also paid the TRS of each month. Can or how should we renogiate as we do not wish to move lender vejo.

 

[jhegarty]

Is there a reason you are not trying to switch to a prime lender ?

 

[vejo]

Yes I have thought about it, but personal age is a major factor.

 

[callaghanj]

You need to shop around as this rate is ridiculous....and is tantamount to robbery. Get a good broker and see if there's anything he can do for you.

 

[irishlinks]

You could at least try asking some other lenders - they can only say no.
You may be able to get rates as low as 3.25 . If you can afford 8.24% - than you could shorten the mortgage term and still be paying the same with another lender.
Have any other lenders refused you because of age?

 

[bond-007]

GE's typical rate is 6.25% atm. Go hassle them.

 

[LDFerguson]

Some prime lenders will allow you to have a mortgage until you're 70, if that helps.

 

[obama]

Did they not offer you a new fixed rate or was it just a variable?

Personally I would try moving to prime at this stage as 36 months at a high interest rate should show the affordability for the mortgage.

If it is a question of term that you require both Start and Springboard go to age 80 and 75 and max terms of 40 years. Their rates start from 6.1% at present.

If it will save you money then I think it's worth the move.