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Debate House Prices
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Discounted Mortgage - New Meaning
BobProperty
Posts: 3,245 Forumite
A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.
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Comments
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That's worth a LOT to many!
If they bought £100,000 house and still owe £100,000 with £5,000 exit fees, they could drop their price and sell it for £87,000 now and run!0 -
PasturesNew wrote: »That's worth a LOT to many!
It's worth a LOT to Edeus. Which is why they're doing it :-)0 -
Edeus funded their mortgages from the wholesale markets. It looks like they need to repay the funding and there must be severe penalties if they fail to do so. It must be more financial appealing for them to take such a drastic step than face these penalties. Incredible situation!0
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dwsjarcmcd wrote: »Edeus funded their mortgages from the wholesale markets. It looks like they need to repay the funding and there must be severe penalties if they fail to do so. It must be more financial appealing for them to take such a drastic step than face these penalties. Incredible situation!
The mortgages are still on Edeus's books, but their debt funding costs have gone up a lot (which is what I guess you meant). Their problem is that they can't sell the mortgage book (or the most toxic bits of it) for less than the value of the mortgages minus the eight percent, so it's cheaper to let people to pay off 92% than to sell the mortgages to a bank in a stronger credit position.0 -
PasturesNew wrote: »That's worth a LOT to many!
If they bought £100,000 house and still owe £100,000 with £5,000 exit fees, they could drop their price and sell it for £87,000 now and run!
it's bRought! Get with it.Happy chappy0 -
Very well put, Californication. As the mortgage guru Ray Boulger said in the article:
"The market for selling on the mortgages is almost dead, and they can be sold only at a very distressed price"0 -
tomstickland wrote: »it's bRought! Get with it.
I think they were buying the property for 100,000 (bought) rather than to bring the property for 100,000 (brought);):wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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