Am I being to hopefull?

monkey_fan

Any advice welcome but I am not sure there is any!
Currently we have a mortgage with Future (part of Citi Bank for those people with slightly less than perfect back ground) and I don't mind the company just the ammount we are paying per month! The property is worth £265K the outstanding amount £225k. So I phoned up and asked is there a way we can reduce the monthly repayments, well you have to ask.
They said that the company is not lending any more and that they have an offer of no redemption charges if we wanted to remortgage with someone else.
So I went to see a mortgage advisor and told my tale. He has a customer at the moment that is in the same boat and Future have offered him a discounted mortgage to get ride of the mortgage (they must be short of cash!).
So now I have an offer in principle from Abby (am pleased we are back on the 'high street') but to get the mortgage we need a discount. I have just spoken to Future who told me they don't do discounts and the offer of a no early exist fees has gone.
So, has anyone else had success with a discount mortage to get out? Or anyone any advice on what to do next? Maybe give up dreaming? To give you an idea of this my mortgage payments would 1/2, this has to be worth persuing further!
Thanks for your time, M.

powerwin

For the benefit of the board, could you clarify the following:

1) What type of mortgage do you currently have with Future?

2) What type of mortgage are you being offered by Abbey?

3) What is this "discount" that you need, and who do you expect to provide it?

Rgds

monkey_fan

powerwin and the board:-

1) 2yr fixed, 6.5% rate interest only mortgage with future
2) Either a 2yr fixed, 3.99% or 2yr tracker, 2.69% - both interest only
3) Currently we have a LTV of 90%, need a LTV 70% and we can make up some of this, not all with our own cash. We need Future to be willing to 'sell' on the mortgage for a discounted amount.

Just wanted to know if dicsounting like this of any amount does actually happen or are the 2 mortgage brokers I have spoken to pulling my leg and leading me down a path that only has one end, that is dead.
Thanks M.

_Andy_

How is the capital to be repaid at the end of the term?

Wutang_2

monkey_fan wrote: »

powerwin and the board:-

1) 2yr fixed, 6.5% rate interest only mortgage with future
2) Either a 2yr fixed, 3.99% or 2yr tracker, 2.69% - both interest only
3) Currently we have a LTV of 90%, need a LTV 70% and we can make up some of this, not all with our own cash. We need Future to be willing to 'sell' on the mortgage for a discounted amount.

Just wanted to know if dicsounting like this of any amount does actually happen or are the 2 mortgage brokers I have spoken to pulling my leg and leading me down a path that only has one end, that is dead.
Thanks M.

So, Abbey will remort if the amount outstanding is 185,500k...

You will need to find the other 40k

powerwin

monkey_fan wrote: »

3) Currently we have a LTV of 90%, need a LTV 70% and we can make up some of this, not all with our own cash. We need Future to be willing to 'sell' on the mortgage for a discounted amount.

Just wanted to know if dicsounting like this of any amount does actually happen or are the 2 mortgage brokers I have spoken to pulling my leg and leading me down a path that only has one end, that is dead.
Thanks M.

OK, bear in mind I am not a mortgage expert, but I would say this:

It may be that a given mortgage lender, in this case Future, has taken on too much mortgage risk onto its books, which means it has agreed to provide too many mortgages that are in danger of default, and this is potentially jeopardising the existence of the mortgage lender.

Under these circumstances, it may be that a mortgage lender such as Future would attempt to encourage their customers to remortgage with another company, in this case Abbey. Commonly they might waive the early redemption fee. I can imagine that other deal incentives might be provided by Future if they are keen enough to get rid of you as a customer, but whether these would be good enough to allow you to transfer is open to question.

So, in summary, the mortgage brokers probably aren't pulling your leg, but whether Future are prepared to provide enough incentive to Abbey, and Future and Abbey can do the deal, is very much down to them. It sounds like you are going to be asking a lot of Future.

Of course, whether it is wise for you to switch is a totally different question.

Just my thoughts, I am no expert.

Rgds

monkey_fan

thanks to all that responded.
My assumption is that Future need to pull some more cash back in (have lent to much of it) so are offering out some incentives. Most likely are that they may waiver the early redemption charges.

I did think it would be asking to much for them to discount my current mortgage but in life you never get something unless you are going to ask for it.

If this does happen or something out of it does happen then I shall let all know (if it's interesting that is!).
Thanks again all.:beer:

AL2009_2

monkey_fan wrote: »

powerwin and the board:-

1) 2yr fixed, 6.5% rate interest only mortgage with future
2) Either a 2yr fixed, 3.99% or 2yr tracker, 2.69% - both interest only
3) Currently we have a LTV of 90%, need a LTV 70% and we can make up some of this, not all with our own cash. We need Future to be willing to 'sell' on the mortgage for a discounted amount.

Just wanted to know if dicsounting like this of any amount does actually happen or are the 2 mortgage brokers I have spoken to pulling my leg and leading me down a path that only has one end, that is dead.
Thanks M.

I am not sure about Future Mortgages but have seen deals with Advantage Home Loans & Oakwood Home Loans. Advantage done this recently (couple of months ago) while the deals with Oakwood were back in Aug - Dec 2008. In both cases the lenders approached the borrowers with offers to redeem the loan & did not entertain borrowers that approached them (this might have changed now & possibly different for Future).

AL2009_2

monkey_fan wrote: »

thanks to all that responded.
My assumption is that Future need to pull some more cash back in (have lent to much of it) so are offering out some incentives. Most likely are that they may waiver the early redemption charges.

I did think it would be asking to much for them to discount my current mortgage but in life you never get something unless you are going to ask for it.

If this does happen or something out of it does happen then I shall let all know (if it's interesting that is!).
Thanks again all.:beer:

Oakwood originally offered 12.5% discount of mortgage balance & waived all fees (early repayment charge, exit fee etc..) this was increased to 25% after negotiation.


Advantage originally offered 10% & waive fees, this was increased to approx. 18%.......


so if they do offer you 'discount' don't be afraid to negotiate, it should be argued that you need to reduce the outstanding balance to refinance otherwise you have no other option but to stay put. They will probably require proof; a KFI, Sourcing Table and a letter from your broker should be enough.

woolly1

Excuse the personal question monkey fan, but do you still have a less than perfect credit reference? The reason I ask is that if you have and Abbey accepted you they might accept us (see my previous thread). My husband has 3 defaults now satisfied since end of 2007. Just wondered if your 'less than perfect' was similar to ours.