Would it be a good idea for lenders to buy back mortgages?

Pimperne1

I would be prepared to listen to Barclays/Woolwich if they wanted to buy back my excellent tracker mortgage so that they could lend the money to someone else on a higher tracker, fixed rate or SVR.

The tracker is probably about +0.25 over Base Rate. I think they would need to offer about 10% of the mortgage to make it work for me but I don't think it would take them too long to make this back up.

Is there any easy calculation using very rough figures:

Mortgage (say) £200k
Cash in Bank getting around 3.5% pa £200k
BOE + Tracker 0.75%

Accepting there are also tax implications for and against.

Obviously only suitable for someone who has the capital but I am going to repay the mortgage when the rates start going up anyway so I am only bringing forward the decision.

Genuine question (but admission that I haven't really given the sums too much thought).

Kennyboy66

Look at me everybody.

"We are considerably richer than yow"

Joe_Bloggs

The tracker is probably about +0.25 over Base Rate

Why not find out for sure.
J_B.

Pimperne1

Kennyboy66 wrote: »

Look at me everybody.

"We are considerably richer than yow"

Kind of expected that. That's why I, said "say" and added that it was a "serious question" (because I am interested in the answers and someone probably has a formula).

Pimperne1

Joe_Bloggs wrote: »

Why not find out for sure.
J_B.

Would need to go out and drag up my financial paperwork box (so just worked out what I was paying each month, compared it to mortgage, assessed an approximate rate).

chewmylegoff

Whilst we're at it, does any one know where I might be able to purchase extra-large condoms?

Graham_Devon

Pimperne1 wrote: »

I would be prepared to listen to Barclays/Woolwich if they wanted to buy back my excellent tracker mortgage so that they could lend the money to someone else on a higher tracker, fixed rate or SVR.

The tracker is probably about +0.25 over Base Rate. I think they would need to offer about 10% of the mortgage to make it work for me but I don't think it would take them too long to make this back up.

Is there any easy calculation using very rough figures:

Mortgage (say) £200k
Cash in Bank getting around 3.5% pa £200k
BOE + Tracker 0.75%

Accepting there are also tax implications for and against.

Obviously only suitable for someone who has the capital but I am going to repay the mortgage when the rates start going up anyway so I am only bringing forward the decision.

Genuine question (but admission that I haven't really given the sums too much thought).

Is this actually based on any lenders suggesting anything like this? Or is it just something to tell us how much money you have?

Pimperne1

Graham_Devon wrote: »

Is this actually based on any lenders suggesting anything like this? Or is it just something to tell us how much money you have?

I believe it has happened before. Will Google - I thought it was Northern Rock but it could be an idea for lenders to get their hands on some sorely needed money so I don't think it is as easy to dismiss as some are doing.

Again, that's why I said "say" - so that we would have something to go on otherwise I could just have said: "I've got a mortgage of £200k, I've got £200k in the bank".

chewmylegoff

Pimperne1 wrote: »

I believe it has happened before. Will Google - I thought it was Northern Rock but it could be an idea for lenders to get their hands on some sorely needed money so I don't think it is as easy to dismiss as some are doing.

Again, that's why I said "say" - so that we would have something to go on otherwise I could just have said: "I've got a mortgage of £200k, I've got £200k in the bank".

I think what you might be thinking of was that NR were forcing people to leave by having an SVR about 7% above base rate, and then not offering any option other than "go onto SVR" to people whose fixed terms were expiring. Not quite the same thing!

chewmylegoff

Pimperne1 wrote: »

Again, that's why I said "say" - so that we would have something to go on otherwise I could just have said: "I've got a mortgage of £200k, I've got £200k in the bank".

On this theme, I've got £200k in the bank, and no mortgage. What do I win?

Pimperne1

chewmylegoff wrote: »

I think what you might be thinking of was that NR were forcing people to leave by having an SVR about 7% above base rate, and then not offering any option other than "go onto SVR" to people whose fixed terms were expiring. Not quite the same thing!

No, but this does seem to be the same thing:

https://forums.moneysavingexpert.com/discussion/1731685