Bad news for packagers as GEMHL increases rates

GE Money Home Lending has increased its rates across its First National and igroup brands blaming exceptional volatility in global financial markets.

All cases below 80% LTV on its First National brand will now incur a completion fee of 2995, with rates increased by 0.80% across the board.

Rates for cases above 80% LTV will be increased by 1.60%, with an unchanged completion fee of 1695.

Rates for all cases over 80% LTV on its igroup brand will be increased by 1.70%, with rates for cases below 80% LTV, increased by at least 1.10%.

The arrangement fee on its near- prime GEM 2 has increased by 700 and 1,000 on its GEM 3 and GEM 7 products.

Any cases that have not already been offered will have the new rates/criteria applied.

Cases already offered must complete by October 3 2008.

Any amendments to any existing mortagge offers regardless of the reason will have to be reassesses on all new rates/criteria.

A spokesperson for GEMHL, says: We can confirm that we have today announced a series of pricing and pipeline changes in response to the exceptional volatility in global financial markets and the significant increase in the costs of funds this has resulted in.

“We have consistently taken proactive and decisive steps to ensure we maintain a viable and sustainable long-term proposition for UK intermediaries and borrowers. Todays changes reflect this approach and we will continue to work closely with all of our partners during these challenging and turbulent times.