Speculative enquiry to Mortgage Company to Increase Equity ?

bgqs

I have a mortgage with SPML whose fixed rate ended earlier this year and I am now on the libor rate.

As SPML is no longer offering new products due to the Lehman Problems, would it be worth me giving them the incentive for me to move away by requesting a discount on the amount owed thus increasing the equity/LTV ?

Please let me know your thoughts as to whether anyone else has done this ?

mortgage-adviser-now

bgqs wrote: »

I have a mortgage with SPML whose fixed rate ended earlier this year and I am now on the libor rate.

As SPML is no longer offering new products due to the Lehman Problems, would it be worth me giving them the incentive for me to move away by requesting a discount on the amount owed thus increasing the equity/LTV ?

Please let me know your thoughts as to whether anyone else has done this ?

This is an avenue with most ex Lehman or Morgan Stanley deals.

Ask them for a settlement offer. When they provide one push them for another 15% off (seriously)

bgqs

Okay thanks...I had read about these discounts from lenders such as Advantage and Kensington however, the offers are normally given by the lender and not requested by the borrower.

I like the idea of 15% discount as this will put me into the 75% LTV bracket. I will send them a ltter today requesting a settlement figure and then see what we can get it reduced to ! No harm in asking I suppose !!!

Thanks

mortgage-adviser-now

bgqs wrote: »

Okay thanks...I had read about these discounts from lenders such as Advantage and Kensington however, the offers are normally given by the lender and not requested by the borrower.

I like the idea of 15% discount as this will put me into the 75% LTV bracket. I will send them a ltter today requesting a settlement figure and then see what we can get it reduced to ! No harm in asking I suppose !!!

Thanks

You dont have to send a letter. Just phone them up and ask them for their best offer on a settlement figure.

bgqs

Okay, I have just rung them up and it is no virtually different (this would obviously be the case as it was an interest only mortgage !).

Should I offer a settlement of 15% discount ?
Do you have any idea of the wording as obviously it would be subject to successful offer of a mortgage from an alternative lender.
Also, should this be made out to SPML's address direct or Capstone ? I think Capstone would say no to discounted settlement whereas as SPML's administrators may think differently ?

bgqs

Anyone help ?

SteveStone

bgqs - Did you have any luck with this?