F&F Offer on a mortgage?

Fred_Bassett

Has anyone here ever made a Full & Final settlement offer on a mortgage? If so, what was the response?

I am 13 years through a 25-year mortgage and there have been no problems with it - I've never missed a payment. I am in a position where I could offer just over half of the amount owing £25,000 from about £48,000 left to pay. This is a straightforward repayment mortgage.

Regards.

Fred

skint_spice

I don't see why any lender would go for that offer, if you don't continue to pay then they have a charge on your home so they'll repossess surely? I thought F&Fs were for non-secured debts that folk had previously defaulted on.

Fred_Bassett

skint_spice wrote: »

I don't see why any lender would go for that offer, if you don't continue to pay then they have a charge on your home so they'll repossess surely? I thought F&Fs were for non-secured debts that folk had previously defaulted on.

Well you might be right. My reasoning here is that if the bank got a large sum up front, they might well be able to invest that and earn more than they would by getting much smaller payments over a long period. There must be a point at which they would be better off in doing so.

Regards.

Fred

pjread

if you're on 0.5% under base tracker or similar, go for it and good luck. Otherwise, well nothing to stop you offering but I'd be amazed....

Fred_Bassett

pjread wrote: »

if you're on 0.5% under base tracker or similar, go for it and good luck. Otherwise, well nothing to stop you offering but I'd be amazed....

So would I to be honest, but there's no harm in trying.

Regards.

Fred

tyllwyd

I'd have thought that the bank might allow you to pay a lump sum of £25000 (depending on the t&c of your mortgage) but then expect you to continue to pay the other £23,000. Why wouldn't they? They could invest the money elsewhere, but if you are paying them a steady 3 per cent or whatever, they have already got the money invested, thank you very much, so why would they want to change?

dimbo61

You say you have £48,000 left to pay ?
Is that the current balance or is that the total over the next 13 years!
Depending on your mortgage rate I would clear the £25K ( provided you have an emergency fund) and then continue to pay the same or MORE each month to pay off the mortgage ASAP
The quicker its paid the less interest you give to your lender and the sooner you are Mortgage Free!

Fred_Bassett

Thanks for that Dimbo. That is one of the plans we've considered - we also need to spend some money on our house, so all options are open at the moment, but getting the mortgage paid off, or at lease a large chunk of it, is top priority.