What is the most a mortgage company will pay to get you off their books?

albo2002

Hi all

I bought a mortgage with GMAC just before the credit crunch in 2007, and since then my property has fallen into negative equity.

GMAC's demise meant they sold the mortgage to Webb Resolutions.

As the fixed rate deal has now ended and I'm on interest only paying a smallish amount every month due to the low interest rates, and as Webb Resolutions is not really a mortgage company, they've told me they would like to 'help' me get a mortgage with a different company.

I've done the sums, and I've worked out that I'd need between £40,000 and £50,000 to make any move affordable to me: ie get a 75% loan to value mortgage (at still an increased rate of what I'm paying now).

I've told Webb Resolution's broker that I could probably stump up about £12,000, so would Webb Resolutions pay the rest? He's said he doesn't know, and before he asks them he wants a survey done on the property to see how much it is worth.

Does anyone know of other examples where mortgage companies have paid large sums to get clients off their books? Could Webb really pay off £38,000 of my equity in order to get rid of me and get the mortgage money from another bank?

WTTM

Deam on.


MOMENT

real1314

Let me try to sort out the figures on this...


You took a £200k, 100% Mortgage?

The house is now worth £190k?

You're paying 2% interest, amounting to £330 a month?

They "want" to get you on a 75% mortgage, i.e £142k, with an interest rate of 6% (?) which they'd get £712 a month on.

Why would they want to throw £45k away to get an extra £4.5k per annum?

poppy10_2

albo2002 wrote: »

I've done the sums, and I've worked out that I'd need between £40,000 and £50,000...
I've told Webb Resolution's broker that I could probably stump up about £12,000, so would Webb Resolutions pay the rest?

Why on earth would they?

They don't need to get your mortgage off their books. Your debt is their asset. They would be happy to sell that asset at full value by having you remortgage with another bank, but they have no reason to give you free money.

albo2002

real1314 wrote: »

Let me try to sort out the figures on this...


You took a £200k, 100% Mortgage?

The house is now worth £190k?

You're paying 2% interest, amounting to £330 a month?

They "want" to get you on a 75% mortgage, i.e £142k, with an interest rate of 6% (?) which they'd get £712 a month on.

Why would they want to throw £45k away to get an extra £4.5k per annum?

Your figures aren't too far off reality.

They want me to switch the mortgage so that the new mortgage company will pay them the money I owe.

I owed about £180,000, yet GMAC must have sold the mortgage to Webb for about £100,000 in order to clear their enormous debts.

I'm currently paying off about £400 a month.

Webb now want to cash in on the money, as that £400 per month isn't doing them much good. So if they sell the mortgage to another bank for, say, £125,000, they've made £25,000.

That's why they want to do it.

albo2002

poppy10 wrote: »

Why on earth would they?

They don't need to get your mortgage off their books. Your debt is their asset. They would be happy to sell that asset at full value by having you remortgage with another bank, but they have no reason to give you free money.

At the moment I'm in negative equity so there is no chance of me remortgaging for some time.

The original offer from Webb's broker was for him to pay me £5,000 to switch. When I explained that £5,000 would be lovely, but I wouldn't even be able to switch for that amount, the conversation moved on to how much I would need.

I explained it would have to be at least £40,000 off the equity, and to my surprise this was met with a "there's no harm in asking Webb" reply.

MrsAckroyd

Hi,

We took out a GMAC mortgage in 2007, which was then sold on to North Yorkshire Mortgages. We got a letter from them yesterday saying that if we remortgage elsewhere, before the end of July they will wipe £31K off what we owe. We currently have £208K outstanding & they will reduce it down to £177K!

We've written back to them asking if they can increase it slightly, so we could benefit from a 75%LTV mortgage.

Definately worth asking if they really want to get rid of us :j

albo2002

MrsAckroyd wrote: »

Hi,

We took out a GMAC mortgage in 2007, which was then sold on to North Yorkshire Mortgages. We got a letter from them yesterday saying that if we remortgage elsewhere, before the end of July they will wipe £31K off what we owe. We currently have £208K outstanding & they will reduce it down to £177K!

We've written back to them asking if they can increase it slightly, so we could benefit from a 75%LTV mortgage.

Definately worth asking if they really want to get rid of us :j

thanks - I spoke to CMG Advice today, who Webb are using as the broker, and they said they have seen Webb pay up to £28k to get clients off their books

Pincher

This is fire sale personified.

I have always thought slaves can't buy themselves,
and the mortgage just gets sold on.

Why couldn't the liquidators just offer the mortgage to the borrower for half price!? I would certainly jump at it.

petebates26

I watch threads like this with avid interest - if my lender was to do this, it would change my life!

deedee71

I kinda hoped something like this would happen with Intelligent Finance. They sent out letters last year saying they were no longer doing mortgages and we would need to shift to Lloyds (or Barclays , definitely someone I'd never dealt with before) when our tracker rate finishes in 2011.

Now they've sent a letter saying we can stay with them, but it seems only at SVR - no mortgage products.

I can but dream lol.