Can they do this?

fossilette

I have had a 2 yr fixed rate mortgage with GMAC RFC since Sept 2007. I have just received a letter from them saying that they have sold my mortgage on to a company called Gemini Holdings and that all conditions etc will remain the same. Can they do this without contacting me first? Has anyone else had this and have they had any problems etc? I've never heard of Gemini HOldings and am quite concerned about this.
I look forward to any helpful advice.

dwsjarcmcd

Yes they can do it, it will be in the T & C's somewhere. In fact it's pretty much all that GMAC RFC do, they acqire a mortgage book and sell it on, although there used to be a much bigger market for this than there is now.

dattasatta

They did it to our Mortgage as well. They sold ours to JP Morgan Chase, 12 months after we started the mortgage.
This was made clear to us by our Mortgage Broker so we were expecting it.

koexelek

dattasatta wrote: »

They did it to our Mortgage as well. They sold ours to JP Morgan Chase, 12 months after we started the mortgage.
This was made clear to us by our Mortgage Broker so we were expecting it.

In the old days , it was common knowledge that GMAC would sell on the mortgage after a few months.
They effectively did the " dirty work" for other lenders a lot of the time. For example, doing a 95% mortgage with no proof of income, then selling it on to a lender who would have wanted to have fully underwitten it if they had had it from day one.
Lender two wanted the business, but did not want to be " seen" to be doing dodgy self certs. :rolleyes:

As time went on though GMAC found it harder and harder to sell their mortgages though. So instead of selling them to the high street, like they used to, they usually only now sell them on to the more obscure lenders ( if they can sell them at all)

dattasatta

koexelek wrote: »

In the old days , it was common knowledge that GMAC would sell on the mortgage after a few months.
They effectively did the " dirty work" for other lenders a lot of the time. For example, doing a 95% mortgage with no proof of income, then selling it on to a lender who would have wanted to have fully underwitten it if they had had it from day one.
Lender two wanted the business, but did not want to be " seen" to be doing dodgy self certs. :rolleyes:

As time went on though GMAC found it harder and harder to sell their mortgages though. So instead of selling them to the high street, like they used to, they usually only now sell them on to the more obscure lenders ( if they can sell them at all)

Ours wasn't quite that bad:eek:
We got a 75% mortgage on quite a good rate at the time. We were classed as near prime. Hubby employed with good job so no dodgy self cert there either;)

koexelek

dattasatta wrote: »

Ours wasn't quite that bad:eek:
We got a 75% mortgage on quite a good rate at the time. We were classed as near prime. Hubby employed with good job so no dodgy self cert there either;)

A lot of their lending was perfectly clean and sensible, to be fair, as they also often had market leading rates.
They were heavily involved in the dodgy stuff too though.

I used them quite a lot myself......for the former, not the latter :eek:

fossilette

Thankyou for the advice. Perhaps it's for the better were away from GMAC though I have to say they gave us a good rate and we've not had any problems with them. It was just very surprising to get a letter saying that from that day we are no longer with them even though we have not had any problems with repayments etc and are now with a company we have never heard of. Well we can only wait and see what happens. Thanks again to all who replied.

begbeer

We also had a mortgage with GMAC, who then sold it to North Yorkshire, but North Yorkshire tried to charge us £50 every time we overpaid which was not in the original terms and conditions, Had to complain to the financial ombusdman before we got our money back

RobertoMoir

fossilette wrote: »

Thankyou for the advice. Perhaps it's for the better were away from GMAC though I have to say they gave us a good rate and we've not had any problems with them. It was just very surprising to get a letter saying that from that day we are no longer with them even though we have not had any problems with repayments etc and are now with a company we have never heard of. Well we can only wait and see what happens. Thanks again to all who replied.

Their selling the debt on is not a criticism of you or a suggestion that you've suddenly become a bad risk, it's simply their business model to create debt and then sell it on.