GmAC mortgage

Brumi

I've received a letter today stating that my mortgage has been transferred to Engage Credit Limited. I do not why and cant find any details on them. Can anyone shed any light on this please.

Senior_Paper_Monitor

does this help .....

http://www.cml.org.uk/cml/publications/newsandviews/56/198

Google is your friend !

Brumi

it helps but I do not why they have done this

Senior_Paper_Monitor

GMAC over levered themselves dreadfully - are selling off debt in tranches to pretty much anybody who will buy it.

You weren't the only one. You weren't 'singled out' for this treatment. Your contract is in place as before, just with someone else.

read the note about how many portfolios they have purchased (at %age of actual debt).

Pincher

Congratulations!

Engage will probably offer you a chunk off your principal owing if you find another lender.

Assuming you owe £100k, and Engage bought the mortgage for £50k from GMAC, Engage can turn a quick profit by selling it to you for £75k. All you have to do is find a lender who will lend you £75k,
and hey presto, you only owe £75k. They want the £75k, so they can buy more mortgages, and keep making 50% returns. Your 5% interest payment a year is not what they want.

isitpossible

Pincher wrote: »

Congratulations!

Engage will probably offer you a chunk off your principal owing if you find another lender.

Assuming you owe £100k, and Engage bought the mortgage for £50k from GMAC, Engage can turn a quick profit by selling it to you for £75k. All you have to do is find a lender who will lend you £75k,
and hey presto, you only owe £75k. They want the £75k, so they can buy more mortgages, and keep making 50% returns. Your 5% interest payment a year is not what they want.

How likely is this, my GMac went to Webb resolutions and would be great if they did something like this. Do I just ring and ask? Would this affect my credit report in anyway??

Thrugelmir

Pincher wrote: »

Congratulations!

Engage will probably offer you a chunk off your principal owing if you find another lender.

Assuming you owe £100k, and Engage bought the mortgage for £50k from GMAC, Engage can turn a quick profit by selling it to you for £75k. All you have to do is find a lender who will lend you £75k,
and hey presto, you only owe £75k. They want the £75k, so they can buy more mortgages, and keep making 50% returns. Your 5% interest payment a year is not what they want.

Or they'll now trade the book mortgage out. As its potentially very profitable.

isitpossible

Thrugelmir wrote: »

Or they'll now trade the book mortgage out. As its potentially very profitable.

Sorry to sound thick, what does that mean

Senior_Paper_Monitor

Taking Pincher's figures ....

You were presumably paying approx 7% interest on the 100K you borrowed - you are still paying that to the new owners of the mortage, but they only paid 50K for it. So if you are paying interest only they are receiving 14% interest - not many returns this good in the market. If you are on repayment I think their earned rate is even higher - but its been a long day and my sums brain cell isn't working.

If you have a few million to invest - placing it with those sort of guaranteed interest rates (excellent debt/asset ratio i.e asset guarantees, even if they have taken 100% LTV mortgages over as they are immediately down to 50% LTV) means a serious income stream/return for many years to come.

I,_Brian

GMAC have been doing this for a while - I had a GMAC self-cert a few years back and they sold it to Advantage, who were a complete bunch of monkeys.

Just ensure the payment record you had with GMAC is properly represented with Engage!

isitpossible

isitpossible wrote: »

How likely is this, my GMac went to Webb resolutions and would be great if they did something like this. Do I just ring and ask? Would this affect my credit report in anyway??

Sorry to ask again but is this likeley to be an option. I am fine on the payments now, fixed deal ending in 2 months and going onto the SVR however, i really do want some security so if i could do anything like this it would be a lifesaver..

anyone or am i grasping at straws here..