Just found out my mortgage has been sold

albo2002

from GMAC to 'Webb Resolutions'.

Without any warning. And Webb Resolutions seems like a one man band.

The fixed rate runs out in a few months (and instead of going onto a SVR I've been told I'll be going on to a Libor plus 2.05% deal) - will this look bad if I go to a bigger lender and say that I'm currently with 'Webb Resolutions'?

luckyfool

a) Your revert rate isnt set by "Webb Resolutions" but is set out in your initial contract with Gmac. i.e. if it is reverting to 2.05% above 3 Month Libor its because thats what you initially signed up for

b) You signed up with Gmac, you took your mortgage out with Gmac, I would be referring to them with any new lender as being Gmac or Gmac/Webb Resolutions

c) Again your mortgage offer and terms and conditions with Gmac would have specified that your mortgage could/would be packaged and sold on. The vast majority of Gmac mortgages were packaged up and sold on to the likes of Bradford & Bingley.

twiggle

Same here, albo2002. Got a letter right out of the blue today. It said that I'd already been told by GMAC that the mortgage had been sold on, but I'm sure I've received no such letter. I, too, am on LIBOR + 2.05%.

koexelek

GMAC must be delighted to get any form of buyer.

They have always sold their mortgage on, but have struggled to do so recently

albo2002

twiggle wrote: »

Same here, albo2002. Got a letter right out of the blue today. It said that I'd already been told by GMAC that the mortgage had been sold on, but I'm sure I've received no such letter. I, too, am on LIBOR + 2.05%.

it's scandalous that LIBOR rate!

I called up the FSA and was told that Webb Resolutions isnt regulated by them. So I called GMAC back and was told that my mortgage was actually sold to Crown Mortgage Management.

All a bit confusing!

albo2002

koexelek wrote: »

GMAC must be delighted to get any form of buyer.

They have always sold their mortgage on, but have struggled to do so recently

Does that mean my mortgage has been seen as attractive for a buyer then?

toonfish

albo2002 wrote: »

Does that mean my mortgage has been seen as attractive for a buyer then?

only because they are seeing a massive return on their investment

twiggle

Well they must be taking a risk because, in my case, the house is in negative equity and owned by the official receiver. Would that rate as a potentially massive return?

luckyfool

Well they probably paid Gmac around 30-50p in the pound for your mortgage. i.e. It was bought for peanuts so even if you don't pay and they repossess and have to sell at auction either now or in the future they are still virtually assured of getting their money back. These "vulture" fund investors are the only people interested at buying up "toxic" mortgage assets at the moment. If you keep paying your mortgage, the market recovers, and you eventually redeem the balance in full then yes they will have seen a pretty massive return on their investment of 100-200% + any interest you have paid. Hell if I had a few million in the bank I would be in touch with Gmac myself

luckyfool

koexelek wrote: »

GMAC must be delighted to get any form of buyer.

They have always sold their mortgage on, but have struggled to do so recently

They have obviously only now started to get desperate enough for liquidity/to get these mortgages off their books that they are willing to accept the bottom dollar prices that are on offer. For mortgages that are/were sub-prime or self cert and are now in negative equity I would be surprised if they are getting more than 50p in the pound for them. The buyers are probably pricing in worst case scenario price falls over the next few years + discounting those values further to account for potentially having to sell at auction after a repossession. If Gmac could actually keep these mortgages on their books and hold them to redemption they would almost certainly be better off, but they obviously need the cash.

djm1972

So if lenders are willing to off-load their self certs and other dodgy looking mortgages at 50p in the pound; is it worth me writing a letter to my lender offering to redeem now at 60% of the outstanding balance....?