GMAC knocking £30000 off capital, really???

Pots'o'dosh

My friends son has has come to the end of a mortgage deal with GMAC but apparently GMAC have offered to knock £30,000 off the mortgage if they stay with them. I find this hard to believe, surely not, there must be a catch. Any ideas??

TEDDYRUKSPIN

Yeah and GMAC will buy out the 50% of the government. New branding of the company to GMicky.

MacTryingToSortItOut

How mad is that, but I wouldn't put it past them???

I just submitted a post asking for feedback with regard to the complete opposite!

My lender just offered to slash mine by over £30k to bog off and borrow off someone else, even though I never miss a payment. Interest only though, so maybe as my terms state 0.5% above base rate when my fixed ends, they cant make any money? You would have thought though they would simply try to get me to buy one of their other products.

Good luck to your friends son is all i can say

Debt_Free_Dreamer

Mac, they only have so much money to lend. If you are only paying 0.5% above the BofE Base Rate, they can get rid of you and lend to someone at a higher rate. This makes more sense.

You on the other hand have to weigh up the £30K against the fact you will not be able to get such a good rate like 0.5% above BofE Base Rate. You will be looking at a much higher interest rate (if you can find a deal at all).

You need to do the maths in total. Increased interest payments against the £30K.

But £30k does seem very high. However, you need to do the maths over a 25 to 35 year mortgage and it probably will seem a more realistic offer.

opinions4u

Potsodosh wrote: »

My friends son has has come to the end of a mortgage deal with GMAC but apparently GMAC have offered to knock £30,000 off the mortgage if they stay with them. I find this hard to believe, surely not, there must be a catch. Any ideas??

I think there's been some sort of misunderstanding. More likely that they are offering to reduce the balance by £30k if he takes the mortgage elsewhere.

Some of these lenders have run out of funds and are desperate for their mortage customers to go elsewhere.

It's cheaper for them to knock £30k off the debt than to actually raise the funds to maintain the business on the wholesale markets.

Debt_Free_Dreamer

My previous post got me thinking.......

If the interest (from another customer) was only £500 per month extra on the value of the loan. Which is realistic if the loan value is around the £200k mark.

That would be £6,000 per year additional income.

£60,000 for 10 years and over 30 years, well £180,000...... Now £30k seems no where near enough to make you go to another lender. They will be raking it in.