Advantage Mortgage Shock Offer

OneFactHunt

Dear all,

I to have had a magic letter from advantage, and yes I called them too check I was not part of an elaborate Hoax. Sadley mine is not for 20K plus like some people but only 15K, however on phoning them they indicated that there is room to haggle with them. The gentleman on the phone, said that if you are still unable to get a mortgage with the lump sum then they may review the offer.

One thing that is bothering me on a different note, is that I have just changed jobs and am on a probationary period with my employer, my bank have indicated that i would need a full contract before they could lend unfortunately the two are about two weeks apart. ie offer expires before probation period ends.

Who should I apporach HR at Company or Advantage? Does everyones offer expire in Sept 09?

luckyfool

Its nothing to do with problems on the mortgage, it's to do with Advantage/Morgan Stanley wanting to liquidate their mortgage book, and they can't sell them on for more than 50 or 60p in the pound to other lenders or investers. Hence it makes sense for them to offer their customers discounts of 20-25%+ to move away.

seikothrill

My brother is a lucky so and so - he has received a letter advising a cash allowance of £72300 if he can redeem his Advantage mortgage by 03 August 2009.

The early repayment charge (approx £15000) and deeds release fee (£195) are also being waived

His current mortgage is £268000, property value approx £290000. Therefore in one letter his mortgage is reduced to below £200000. As I previously said what a lucky so and so. I doubt Woolwich will offer me an incentive to move.

He spoke to the Advantage broker but was not impressed with them. He is now speaking with my IFA.

luckyfool

JCR1987 wrote: »

Hi all. I'm another one of the 'lucky one's'. Had a letter a couple of weeks ago making us an offer of £29k to leave Advantage. (There was part of me tempted to ring up and try and haggle for more seeing as they appear so desperate, but I figured that may be tempting fate)

We're up for remortgage now as well so approached our bank (Yorkshire) to do a remortgage and they couldn't believe Advantage would make such an offer, even though it was written in black and white in front of them. They phoned them up and Advantage confirmed they would pay £29,000 off the balance before the mortgage was settled if we could find another deal. No ERC's, no transfer fees, nothing.

Unluckily for us my wife had a default with 1 month left of the 6 years to run before it drops off her credit file, thereby getting us rejected by Yorkshire. We're in the process of appealing but don't hold out much hope. However, our plan of action if we don't get the remortgage is to go to an IFA to see what they can do for us.

We used an IFA (MoneyQuest) to get the Advantage mortgage in the first place when no-one else would touch us, so hopefully they can work their magic again for us. We're certainly in a better position now with around a 20% deposit to offer.

The only thing that slightly worries me is that Advantage have time-limited the offer to the end of August, so if we can't get anything going within the next couple of months it would be a major kick in the crown jewels if we lost out on 29k off our mortgage. Hopefully if they're that deperate to get rid of us they'll be prepared to extend the offer.

Thank the lord for the credit crunch!!

If the default is satisfied then there shouldnt be a problem getting an alternate high street lender to look at it. Even failing that there should certainly be some reasonably attractive options out there for you. I would make some initial enquiries with a whole of market broker now, (without getting any credit searches done yet) rather than waiting on your Yorkshire appeal.

zedsdead_2

We just got our letter on Friday for £37500 if we close our account by 11th September 2009.


I had adverse credit when we got the loan and was in a DMP with Payplan. I have since paid the £22000 I owed then in full and all my defaults are now "satisfied". I have not checked my credit rating since December but I believe it has improved as I have had no debts since December and no bills outstanding, mortgage paid in full yadyayada.

Thing is, do I go back to the broker who got me the deal or just staright to the high street?
I don't want any rejections and really want to go main stream now as I have paid for my sins. Any advice:beer:

luckyfool

Zedsdead - defaults registered within the last 6 years, whether satisfied or not are still going to show up on your credit file. If for non-trivial amounts (i.e. enough to make a DMP worthwhile) then it is likely that that will rule out many high street lenders. A broker will be best placed to advise on the high street lenders most likely to be sympathetic in your specific circumstances, so if you were happy with your original broker then go back to them to get some advice, if you weren't then get a new one.

zedsdead_2

He was a good guy really. Did a swell job as they say so i guess there is no reason to dump him right now.
I have just got my score from Experian and its "good" 900 the mark.

Ok. So do I get the broker involved after I get the "mortgage redemption statement" or just send him a copy of the letter and get him started? i guess one needs to know all the figures before going ahead with the deal right?

The credit report says balance is 214K so with their offer that's about a 20% reduction in amount owed and if i maintain payment levels it'll shave 8 years off my mortgage. (I can still afford them as they are):rotfl:

Squish_21

Sounds great! Bite their hands off!

OneFactHunt

Hi,

How have Advantage calculated these amounts, as my offer seems alot smaller than most others?
as it amounts to only about 10% of remaining balance?

zedsdead_2

One thinks you'd need the balances (amount owed) and amounts offered for several people in order to extrapolate some sort of formula applied by the lender. even then I doubt it'd be conclusive. I'd like to think someone here can work it out soon enough. I'll take mine though I'd like more nearer the 25% as that means good rates with new lender