Webb resolutions offering to discount my balance?

Kendall85

Hi there,

New to MSE, been reading for a while and wonder if by any chance any of you chaps/chapettes can help me out.

I took a mortgage out with GMAC in 2007(I know I know!!!)
Anyway, to cut a long story short just over a year ago it was sold to Webb Resolutions...which alarmed me at first as I thought I was in for it!!!!
Anyway my 2 year fixed ended and I was put on a libor tracker which resulted in my interest only payments going from 600 PCM to just over 250! RESULT!!
Although I am technically not paying anything off of my balance I owe just under what my property is worth which isnt all bad as I don't intend to sell for a few years yet!!

So anyway cutting a long story short I had a call from a lady at Webb today telling me that I had been preselected to take part in this scheme to place my mortgage elsewhere and discount my balance!
Now call me pessimistic but why would they want to do this?
Probably because their toxic investment isnt currently making them a lot of dosh!!! So therefore I believe they would like to get me off their books!!
However I have read some threads on here but never seen anyone talk any figures as to how much they managed to get off their balance it would have to be a sizeable chunk realistically the make it worth it for me as if I remortgage at 90% im going to be looking at a fixed rate of 5%+

So really it would need to be around 30K to make it worth it.

To summarise if figures help:

I earn 30-40K P/A (Commission based job)
My mortgage balance is 127K
My house is not worth much more if not less! (Maybe 125K realistically)
Im 25
Held the mortgage for nearly 3 years to the day.

What can I expect and what would you advise to be a worthwhile deal?

Regards

K:j

GMS

Have you missed any mortgage payments in last 3 years?
Do you have any CCJ's or defaults?

Your property appears to be in negative equity so there would be no way to remortgage elsewhere.

You would need to see what they will be prepared to offer as a discount and see what is available based on that

Kendall85

Hi there,

Missed one payment had to pay late due to financial reasons but that was under GMAC ages ago always been fine ever since.
No CCJS or defaults.

Ok Cheers

Thrugelmir

Any other loans or credit cards ?

GMS

The missed payment may cause issues.

How is your income made up? Any basic salary?

You may me best speaking to a broker to see what is available.

Kendall85

Hi there I have a basic salary of 20k the rest is made up in commission no other loans or credit cards cheers

GMS

You need a broker to look into it.

Lenders view commission differently.

Once you know the redemption figure for Webb you will know if it can be done.

luckyfool

Well, alternatively you see what kind of new mortgage is available and make a pitch to Webb on that basis. i.e. The maximum I am able to get is x figure, which means you guys are going to need to write my mortgage down by y figure for me to leave ... how about it.

Had a similar scenario for a client with Advantage (Morgan Stanley), their first offer was a discount of about £20k, I managed to get them up to £50k which was nice.

Webb - whats in it for them is that they will have probably paid 50-60p in the pound for your mortgage based on the idea that they either cash in quickly by selling it on/discounting it back to for redemption/repossessing it, or hold it to redemption and on average across this and other bought mortgages will get back much more than what they paid for it.

Given that your payment history is good, your ltv is high at 90%, and your rate is very low, you have obviously been selected as being someone who it is attractive for them to try to push down route 2. You aren't going to remortgage away without a sweetener due to your current good rate and high ltv. There are no signs of them being able to repossess you as you are paying it all on time, along comes option 2 where they pay you to go away. As long as the redemption figure they get you to pay after the discount is higher (probably still much higher)than what they paid for the mortgage, it is still likely to be a very profitable exercise for them (lets say they paid 60p in the £ to buy the mortgage, and maybe have to give you a 20% discount to leave) then on a £90k face value mortgage o they give you £18k to leave, getting £72k on redemption, after only paying GMAC £54k for the mortgage what 12 months ago. i.e. a 33% return on their investment in 12 months (not including interest payments received from you over that period).

It's definitely worth doing some proper research as to what new mortgages are available for you, and putting together a case to Webb to pitch for the required level of discount.

Thrugelmir

As you are on an interest only deal. Maybe use some of the savings to reduce your mortgage balance. As although interest rates are currently low they will rise again in the future.

In switching your mortgage you may well be asked to provide evidence of how you intend repaying your mortgage.

Kendall85

luckyfool wrote: »

Well, alternatively you see what kind of new mortgage is available and make a pitch to Webb on that basis. i.e. The maximum I am able to get is x figure, which means you guys are going to need to write my mortgage down by y figure for me to leave ... how about it.

Had a similar scenario for a client with Advantage (Morgan Stanley), their first offer was a discount of about £20k, I managed to get them up to £50k which was nice.

Webb - whats in it for them is that they will have probably paid 50-60p in the pound for your mortgage based on the idea that they either cash in quickly by selling it on/discounting it back to for redemption/repossessing it, or hold it to redemption and on average across this and other bought mortgages will get back much more than what they paid for it.

Given that your payment history is good, your ltv is high at 90%, and your rate is very low, you have obviously been selected as being someone who it is attractive for them to try to push down route 2. You aren't going to remortgage away without a sweetener due to your current good rate and high ltv. There are no signs of them being able to repossess you as you are paying it all on time, along comes option 2 where they pay you to go away. As long as the redemption figure they get you to pay after the discount is higher (probably still much higher)than what they paid for the mortgage, it is still likely to be a very profitable exercise for them (lets say they paid 60p in the £ to buy the mortgage, and maybe have to give you a 20% discount to leave) then on a £90k face value mortgage o they give you £18k to leave, getting £72k on redemption, after only paying GMAC £54k for the mortgage what 12 months ago. i.e. a 33% return on their investment in 12 months (not including interest payments received from you over that period).

It's definitely worth doing some proper research as to what new mortgages are available for you, and putting together a case to Webb to pitch for the required level of discount.

Hi there thanks everyone for your help, and thank you luckyfool very useful info.

be interesting to see whats available im still waiting to be contacted!!

luckysod_2

Hi there right were do I start I also took out a mortgage with Gmac in 2007 my fixed rate run out in swept 09 a couples of months before Web resoultions brought my mortgage. when the fixed expired they offerd me a massivley high rate so I phoned up and they said they may be able to help me out and sent out one off their mortgage advisers who worked for Man & Co (same parent company) Nice bloke told me that in some situations they have written off part of the mortgage to assist in someone getting a new mortgage. Well this all happen last year and noew halifax have my mortgage of £40,000 less than origanally. But and hear it comes now they are saying it was never agreed to be written off it was a personnel loan with no written agreement so i still owe them the money!!!!! their is nothing in writting and they wil not write to me telling me this. They will not update credit file that says I am still in 1 months arrears and owe them £220000 it has not been updated since december 2009. I am now tackling this through the Financial obudsman. But it seems very strange they are still spinning the tail of the company having to offload mortgages beacuse they are in trouble.
I managed to get them from having LTVof 93% to 75% LTV. If you have any further questions on my experiance please ask.