very urgent help needed

technolight

I have a mortgage with Wave lending £19k still to pay over 3 years , I am very persistently getting very abrupt phone calls from them more or less telling me to move my mortgage elsewhere and they will knock 2.5k off my loan , I have said no , but they will not take that for an answer , since when did loan companies try to save you money I am sure that they are not doing this out of the goodness of their heart.

Then I found this on there website.

Wave has ceased all mortgage origination activity. All borrower enquiries should continue to be made to our customer services department, the contact details can be found in the contact us section.

What does it mean and what should I do , thanks in advance for any help someone can give me.

The_J

How's your recent credit history? You might be able to remortgage.

Why the hell do you want to pay 2.5k more? Wave want to get rid of you to balance the books and get some cash back. Unless you're on a great great rate why not?

edit: if you can remortgage, go back to them and say you can do it but you'll need a 5k discount.

Gentoo365

Firstly, don't worry, it seems like this is a 'special offer' rather than a demand for payment. So you don't have to do anything. I would class this as marketing myself, so you may want to inform them that you wish to opt out of all marketing communication by phone. Maybe keep opted in by mail just in case they make a better offer.

I am guessing here, but as they are no longer doing business they are probably trying to wind down their portfolio. Another total guess is that the mortgages are securitized and some sort of 'call date' or 'step up' date is coming up. In brief this means they need to pay some investors.

This is not your problem it is theirs. They have misjudged their business and basically want you to re-mortgage somewhere else.

It may be worth taking them up on the offer, but that depends on your personal circumstances and the rates you are paying vs what you could get elsewhere.

technolight

Thanks Gentoo , was get a bit worried as I am not good at handling aggressive phone marketing and do not want the hassle of remortaging so I will just leave it where it is , They say I have to have until the 25th of may to take them up on their offer and hopefully the twice daily phone calls will stop after that.

The_J

Mate, they are potentially giving you £2,500. Possibly more if you can negotiate the extra, it is well worth consideration especially if your LTV ratio is good and you can get a better rate of interest. I would strongly advise some financial advice.

Pont

As above - I would try to negotiate a larger pay off. Essentially they want to get shot of you so why not try for £5000 off your existing mortgage (down to £14000)? Before accepting take a look around and see what deals you can come up with using alternative providers. I wish I was in your position :-(

marathonic

Yeah, I work for a US insurance companies IT department and there are groups of policies that we've been trying to get off our books for years.

Basically, the policies represent about 2% of our books but maintaining the system (primarily updating it to comply with various state law changes) costs the exact same as maintaining the system that handles the other 98% of our business.

To our outside customers, they don't see a difference in the two types of policies but the technologies used for each are COMPLETELY different so we spend the same on servers and training of new staff for each.

In a similar manner, it looks like they are trying to close their mortgage books down and concentrate on their other areas of business.

It's definately worth considering as you may be totally wrong in assumming that they're not giving you a good deal.

Thrugelmir

Gentoo365 wrote: »

It may be worth taking them up on the offer, but that depends on your personal circumstances and the rates you are paying vs what you could get elsewhere.

If the offer isn't accepted then the mortgage may well be sold on. Then you are at the mercy of the new owner.

marathonic

Thrugelmir wrote: »

If the offer isn't accepted then the mortgage may well be sold on. Then you are at the mercy of the new owner.

Is mortgage debt sold in a similar manner to normal bad debts? I know that, in Ireland, banks tend to sell it on at a certain percentage discount and they have a set percentage in mind.

For example, Ulster Bank at the moment appear to be offering people in arrears a 30% discount on their debt before passing it onto solicitors.

Obviously, that percentage would be lower in this case as it is a secured debt and it not in arrears but it may be worth keeping an even percentage figure in mind if attempting to make a counter offer - for example, asking for a 20% discount on your 19k loan (I reckon the debt would be worth more than 14k on the open market so they may not go that low).

Thrugelmir

marathonic wrote: »

Is mortgage debt sold in a similar manner to normal bad debts? I know that, in Ireland, banks tend to sell it on at a certain percentage discount and they have a set percentage in mind.

Doesn't make any difference to the borrower what the mortgage is sold for. As with the mortgages that were sold by BOI to TMW. An interest rate increase was imposed by TMW. Prior to the sale BOI had offered various incentives to entice borrowers to remortgage elsewhere.

marathonic

Thrugelmir wrote: »

Doesn't make any difference to the borrower what the mortgage is sold for. As with the mortgages that were sold by BOI to TMW. An interest rate increase was imposed by TMW. Prior to the sale BOI had offered various incentives to entice borrowers to remortgage elsewhere.

Yeah, I'm aware that it won't matter to a borrower what a mortgage was sold for after it was sold.... however, it'd be useful information to know before it's sold so you could potentially make your own offer to remortgage.