GE Home Lending launches refinancing facility

Ramesh Sharma

June 1, 2004

GEMHL, which rebranded from GE Consumer Finance Home Lending at the beginning of October, launched the refinancing option to offer existing igroup mortgage customers lower rates if they return to igroup for a new mortgage deal.

The 0.25 per cent rate reduction on all one and two-year fixed and discounted products is available across the GEM range with rates beginning at 4.5 per cent. The rate will revert to the prevailing tracker rate for that plan at the end of the product period.

Duncan Berry, sales director, first mortgage at GEMHL, said: “The introduction of this new, easy to understand incentive for consumers returning to us for a new mortgage is further evidence of our commitment to our customers and the intermediary sector. Our igroup GEM range is now more comprehensive and flexible than ever before.”

Simon Chalk, mortgage planner at Mortgage Portfolio Services, said it is good that lenders are realising the importance of customer retention but those lenders who conduct business solely through intermediaries need to consider the broker’s role in the original mortgage selection and completion.

“In principle I have no problem with offers like this as customer retention is important and lenders are realising such offers can help them keep hold of consumers but the lender should give a procuration fee to the original introducing intermediary,” he said.

“Incentive deals like this have no consideration of broker remuneration. If we advise a client to remain with the lender, we receive no proc fee despite the time and work that goes into finding what the best deal for the client would be. Without a proc fee, the broker is faced with having to charge the client,” Chalk added.

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