GE Money launches 3 year discount mortgage

Almost three quarters (70%) of the UK’s mortgage brokers believe that the Bank of England base rate will end the year lower than it finished 2007, according to GE Money. The majority (61%) predict the base rate will finish the year between 5.0% and 5.4%. However, one-in-ten brokers (9%) predict the Bank of England base rate will fall to below 5% by the end of 2008.

In reaction to this sentiment GE Money Home Lending, one of the UK’s leading specialist lenders, is offering a three year discounted mortgage rate of 7.14% via its First National brand. The deal is available to new purchasers and to those remortgaging their property, categorised as Near Prime Plus (NP+). Applicants categorised as Near Prime can take advantage of a 7.34% interest rate on a three year discounted mortgage.

Key product features

7.14% discount rate for three year mortgage Near Prime Plus (NP+)
7.34% discount rate for three year mortgage Near Prime (NP)
Maximum Loan To Value (LTV) 95%, 90% for self certification applicants

GE Money Home Lending has also launched a particularly attractive discounted rate for first time buyers. The company’s First Time Buyer Plus (FTB+) three year mortgage product offers a rate from 7.19%. Higher LTV rates are available and particularly attractive to first time buyers who may only require a five percent deposit to take advantage of this offer. The company’s standard First Time Buyer (FTB) three year discounted mortgage offers a competitive rate from 7.79%.

Gerry Bell, Head of Mortgage Marketing, GE Money Home Lending, said: “Despite the January decision to hold, our latest research reveals brokers expect the Bank of England base rate to fall throughout 2008 – many of which believing it will fall below 5%. Discounted rates are likely to become more popular throughout the year, so we have responded to this demand with the launch of a competitive new range of discounts, which will be attractive to many brokers.

“Consumers and brokers alike will be looking for a reduction in interest rates to ensure property purchases remain affordable. Homeowners with a fixed rate mortgage that is set to expire in the course of 2008 will be hoping any cut in rates comes in the first quarter. First time buyers and remortgagers will also be keeping a close eye on the voting decisions of the Bank of England’s Monetary Policy Committee.”