Lender offering to buy back mortgage???

MacTryingToSortItOut

Hi

This maybe normal, but has never happened to me ever...

Received a letter today, out of the blue, from my lender (subprime) stating "...undertaken a detailed review of your mortgage products, and as a result, I am pleased to make the following offer available to you if you close your mortgage account before xx September 2009".

I also had a missed call at home which appears to be their 0870 number...they never ring!

They then go on to offer me a 'cash' allowance of over £30k, no early repayment fees, and no exit admin fees etc if I would like to take up a mortgage with a different lender!!!

So basically, they're offering a huge 'money off' the amount I owe if i !!!!!! off to another lender!!

Weird! I make my payments on time every month...and in full of course, so why do they want rid??

Made me think either that they are in trouble and need the funds in, or maybe they even beleive I was missold or there is something wrong with their terms & conditions. Wouldn't know what where or how, just all seems a little odd.

Has anyone come across this before, or would like to speculate what its all about?

Any and all advice/opinions would be most welcome

If its important, the mortgage is 'interest only' (yes, i know ), and still has about 9 months to run on a fixed rate deal.

silvercar

Some lenders are trying to reduce their mortgage book. There have been a couple of people posting similar things, though I have never seen 30k cash offered.

Definitely worth taking.

elliebobs

someone else in the same situation posted v recently;their mortgage was with someone called Advantage. Silvercar is right in that some companies are looking to offload their mortgages. It could be that there may be something slightly dodgy in the original agreement. i.e that they couldn't enforce the repayments. Either way, if you can get another mortgage with another lender then I say go for it (after reading all the terms and conditions obviously).

I just wish the Royal Bank of Scotland did the same!!!!!

Good luck and hope it all works out

MacTryingToSortItOut

Just thought I would give a quick update.

Spoke to the IFA who setup the mortgage in the first place. They have said it is a genuine offer since this lender is trying to off load as much as possible as is not currently accepting any new applications!

The likely hood is that if I dont accept the offer they will sell on the mortgage to someone else, but they would have to honour my original agreement!

The lender is Advantage (or Morgan Stanley) so make of that what you will!

If anyone knows anything else or has an opinion that tag it on

_Andy_

I may be missing something, but I don't really get why you'd need any input here- you're being offered £30k, what is there to think about?

Gillybean

I think it was me Elliebobs was thinking of, I've had a similar (although nowhere near 30k!) offer from Advantage. I did ask them about it and discovered they'd ceased lending back in dec and are trying to reduce their portfolio.

Enjoy the windfall!

littlemrtinkle

i wish the nationwide would offer me that. i would bite their hand off. Just check you can get another mortgage first.

MacTryingToSortItOut

Sadly, due to a poor career choice (started a small business that drained all our money...and some, and sadly then went to the wall) a few years ago, we kinda stuck when it comes to getting a mortgage...any mortgage from anywhere!

When we got this one nobody else would touch us (it was a remortgage in an attempt to settle some debts, which worked to a degree, but it didn't free up enough to pay everyone off...even with offers of settlement lower than the amount owed).

So my problem now is getting another lender to take the mortgage even with the huge discount being offered. But never mind, gotta keep smiling and trying to pay stuff off one day at a time

MacTryingToSortItOut

oh, in case anyone is wondering, my wife and I both work in the construction industry now, and although we have both survived the kulls of the last 18 months, you never know whats around the corner, although we have both definately seen signs of a vast improvement in the number of houses being built and sold over the last few months, so fingers crossed :T

_Andy_

What is the balance and how much is your home worth?

MacTryingToSortItOut

The balance is prob about £185k, and guess val'd at around £200k (was £220k) but maybe lower.

Still managing to make min payments on last few remaining debts, but with longer hours and cuts in pay (at least we kept our jobs) I wish we could take full advantage of the offer, but cant see how?