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Anyone had a reduced redemption offer?
Wobblydeb
Posts: 1,046 Forumite
Just wondering if anyone has managed to negotiate (or been offered) a reduced redemption amount if they move or redeem their mortgage?
A colleague had this happen - they were offered c£20k reduction if they took their mortgage elsewhere. It was a negative equity situation, but by borrowing from family they were then able to get a mortgage with another lender. The original lender wrote off £20k-ish.
Their lender offered this without prompting - probably cleaning up their mortgage book, but has anyone suggested this to their lender? And more importantly, did it work?!
Thank you
A colleague had this happen - they were offered c£20k reduction if they took their mortgage elsewhere. It was a negative equity situation, but by borrowing from family they were then able to get a mortgage with another lender. The original lender wrote off £20k-ish.
Their lender offered this without prompting - probably cleaning up their mortgage book, but has anyone suggested this to their lender? And more importantly, did it work?!
Thank you
I've got a plan so cunning you could put a tail on it and call it a weasel.
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Comments
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The only lenders that have done this are those that had high risk (sub prime) borrowers who wanted to get rid of that risk. That was also during the peak of the crisis. Since things have calmed they have ceased doing this.
Mainstream (prime) lenders havent been reducing it and have been giving a straight no to anyone that has tried (with a few exceptions of when its really close to the expiry date of the existing tie in.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
So likely no luck with Nationwide?
Oh well .... it was a nice idea. What do they do with negative equity situations when you sell your house then? Does it become an unsecured loan?I've got a plan so cunning you could put a tail on it and call it a weasel.0 -
What do they do with negative equity situations when you sell your house then? Does it become an unsecured loan?
They wont let you sell it unless you fully repay the mortgage by other means. What other means you choose is up to you.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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