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GE Money has announced that it will reduce interest rates for third-party distributors by 58 basis points however Wizard borrowers will again fare better.
Following the November RBA 75 basis point rate cut Wizard home loans customers will enjoy a full three quarter per cent reduction.
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The lender’s sub-prime range of products, Specialist Options, will only see a 50 basis point cut, GE Money confirmed yesterday.
The announcement follows GE Money’s refusal to reduce their third-party rates after the RBA cut the official cash rate by 100 basis points in October; the lender blamed rising funding costs on its decision.
GE Money however managed to pass on rate reductions of 80 basis points to Wizard clients.
Rob Morse, director of mortgage manager Wilson National, said yesterday's reduction for third-party borrowers was “too little too late”.
“It will certainly be some relief for clients but it’s definitely a bitter pill to swallow when some borrowers are seeing a lot more relief,” he said.
Mr Morse said his customers were the unfortunate victims of “big business” and said GE had “no consideration” for their clients and little concern for mortgage managers and borrowers who had to break the disappointing news.
Published: 19-11-08
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