Reducing a settlement fig???

mrburns_2

I remember reading a post on here a week or so ago that someone was offered quite a bit of discount to settle their mortgage as the company concerned was pulling out of lending.

Does anyone know if this is a one off? Reason for asking is that I have a mortgage with GE Money and when I phoned to ask about a new deal they said they had stopped lending and now specialising in the bankrupt/ ccj market. Im on a fixed 5.49% which will go down to about 3% when my 3 year fixed ends in Feb. I mentioned on phone that I was tied in till Feb 2010 with a £6k penalty charge, she immediately said she would cancel the redemption penalty if I wanted to settle before the fixed rate ends.

Many thanks in advance for any thoughts.

opinions4u

You're unlikely to beat 3% by moving elsewhere. Have you asked them if they would reduce the capital amount as well as waiving the ERC?

What guarantees does the 3% rate give you (e.g. is it BofE + 2.5% for life)?

Do you have any credit issues?

What do you owe and how much is the property worth?

mrburns_2

I need to move house. I called them to see what rates they were offering for the new house - they said 9% is their average now :snow_laug . To get the house we want we are just scraping the 85% LTV to give us a better chance of the mortgage we are after - so every little helps.

I have a satisfied CCJ for £12k which was settled 3 years ago but will still stop on my credit file for another couple of years so the better LTV I can get the better the chance. Have had no missed payments etc in last 3 years.

dimbo61

Get it in writing that they will cancel a £6,000 ERC or plan on moving after FEB 2010.
once you have the letter in your hand GO OUT AND GET DRUNK
GOOD LUCK with getting the mortgage for the new house

arwenamen

Hi,
was just wondering mrburns, if you had any luck with GE Money? We are in a similar position in that our fixed rate ends in march. In our situation tho we are in neg equity so unable to move our mortgage to another company so if they would reduce the settlement figure that would help us to remortgage with someone else.

Going to ask them ourselves anyway but just wondered if you had had any luck?

Thanks

Ruth