Off Set Mortgage - Will the bank make a deal?

JimmyTheWig

kingstreet wrote: »

We'd have heard about it by now if it was happening.

Maybe I'm exagerating when I say a "good" deal.
But I'm sure that there are banks out there with mortgages they don't want. I'm thinking low rate, here, but I would imagine that high risk would come in to play, too.
Surely they would pay _something_ to be rid of them?

It's not a "good" deal, as obviously the banks won't pay more than they are losing on the mortgage, which means it's better for the borrower to keep the low rate. But I still think there must be some leaway for some customers to haggle.
Not the OP, though.

kingstreet

Advantage HomeLoans, the Morgan Stanley subsidiary was offering about 25% discounts to get rid of their book and lately, BoI was offering to waive ERPs and £1000 for their borrowers to skidaddle.

I can honestly say though, I've never heard of a mainstream lender offering discounts to get rid of those on cheap rates. TBH often the rate isn't funded by the lender, it's funded by a rate-swap and there's no conduit for the market counterparty to communicate with the borrower for them to make an offer which would see the deal end early.

Lenders, where they are funding the offers themselves, appear happy to accept that mortgages end, through maturity, early repayment and other ways and that the ones paying SVR pay enough to subsidise the ones on low rate trackers who stick around longer