Being paid to move your Mortgage?

AndrewPainter

I wonder if anybody can offer any good advice about trying to get a mortgage lender, who potentially wants to run their mortgage book down to make me an offer to transfer/move/pay off an existing mortgage.

More specifically, i'm with IF.com and i know they don't do mortgages anymore and i'd assume they will want to clear their mortgage book as fast as possible, so, how would i best approach them to see if they are open to the idea of paying me to move. I'm on a great mortgage with them, it's the bank of england base rate tracker, with the promise never to be more than 2% above base, so almost certainly the longer i keep it with them, the more it will cost them, as i doubt they are borrowing from the money markets at Base +2%.

Do i need to get a mortgage advisor involved or a solicitor?

TIA.

Thrugelmir

What rate are you hoping to move to? Any benefit gained by reducing your mortgage may be outweighed by the additional interest charges incurred over the remaining term of the mortgage.

as i doubt they are borrowing from the money markets at Base +2%.

They'll be raising retail funds at less than this in the long term. As deposit rates are in the main lower than bank base.

AndrewPainter

I'm looking to sell the property, so not moving to a new rate, just thought that it might be worth asking, nothing ventured, nothing gained, and it might be a win-win situation for both me and the bank.

hcb42

if you are selling, it will be paid back anyway, nothing in it for the bank

AndrewPainter

what i guess i'm thinking is that at this point the bank will assume i'm going to keep the property for some time, (which i may), if i need to sell the property at a slight discount to move it off mine and the bank's book then it could be in the bank's favour to reduce the mortgage amount, so i the bank and the buyers all win. Below a certain point, i won't sell so i'll keep the mortgage running. Hope that makes sense. I'm not looking to deceive anyone, but simpley put a deal together where we all gain, including the buyers

hcb42

I dont think lenders like that barter.......

Thrugelmir

AndrewPainter wrote: »

if i need to sell the property at a slight discount to move it off mine and the bank's book then it could be in the bank's favour to reduce the mortgage amount,

If you sell or remortgage then the bank gets it money. The bank can take the long term view and wait.

dunstonh

Whilst some sub prime lenders were willing to pay to get rid of people, I dont think any prime or near prime lenders are.