Mortgage provider offering 52,000 discount if repay now!

ANY_CHANCE

Had a letter from our mortgage provider offering 52 000 off if we repay the mortgage in the next 3 months, no fees or charges.

Are many mortgage providers doing this?

I wish i could win the lottery in that time!

I doubt very much there is any way of re-mortgaging and keeping the interest near the level it is now which is around 3.5%

Has anyone else had this offer?

getmore4less

There are a few lenders offering this

Lender?
Mortgage size?
Current term
Income?
Age?
Other debt?
Other savings?
Income suplus?

happybroker

even if you can't keep the rate as low as 3.5% £52k is a hell of a lot of money and it may still be worth your while paying a higher rate on a smaller mortgage.

ANY_CHANCE

Mortgage lender - JP Morgan Chase
Mortgage - 198,000
Time left - just a bit over 27 years

Income is the prob as i am a student with 1 year left and other person on mortgage is now self employed

would be worth it but its not very straight forward ....hah things never are, are they!

_Andy_

How long has app2 been SE? Do they have any accounts?
do you have any income?

Cardinal-Red

getmore4less wrote: »

There are a few lenders offering this

Can I ask, on what grounds they are offering this?

Is it like, as with loans, they are effectively cutting their losses on a badly managed account? Or are they offering these on well managed accounts too, perhaps anticipating further house price falls?

(No disrespect to the OP BTW, you don't specify your situation, and I'm not inferring that you're in arrears/struggling etc!)

Wutang_2

Cardinal-Red wrote: »

Can I ask, on what grounds they are offering this?

Is it like, as with loans, they are effectively cutting their losses on a badly managed account? Or are they offering these on well managed accounts too, perhaps anticipating further house price falls?

(No disrespect to the OP BTW, you don't specify your situation, and I'm not inferring that you're in arrears/struggling etc!)

Cutting the books..nothing to do with house prices. They bought a book of debt and can still make a few squid out of it.

Cardinal-Red

Wutang wrote: »

Cutting the books..nothing to do with house prices. They bought a book of debt and can still make a few squid out of it.

But less than they would have - in the OP's case, £52k less and all the interest that goes with it!

There must be a better reason than wanting to hoard cash?

HappyMJ

There are a lot of overheads in running a mortgage business. JP Morgan don't want to employ anyone to chase or even just to manage a handful of mortgages for the next 27 years so they need to either get the customers to remortgage to other providers or JP Morgan will need to sell the mortgage onto someone else at a reduced price or continue making losses on the book. The profit isn't just the interest rate of 3.5% they have to purchase money on the money market probably at least 3%(for a sub-prime book) then they have to pay at least one full time employee to manage the remaining mortgages. There isn't any profit.

opinions4u

Cardinal-Red wrote: »

But less than they would have - in the OP's case, £52k less and all the interest that goes with it!

There must be a better reason than wanting to hoard cash?

They are committed to a rate of 3.5% to the OP.

Let's say that their wholesale funders are charging them prohibitive rates that are significantly in excess of 3.5% - this would be committing them to lose money for another 27 years in this case. Cheaper to write off a quarter of the debt than lose money forever.

If the OP can remortgage on to an ok rate (even if it is a little more than 3.5%) and get £52k knocked off the debt he/she should do that. It might be easier said than done, so a quick chat with a decent broker should tell them if it's possible.

blue_haddock

i wish someone would offer me 52k to go elsewhere.

I'd be mortgage free and have a nice lump leftover!