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Early settlement offer by offset mortgage provider?
cheeryoleary
Posts: 19 Forumite
Apologies if this has been discussed before. I think it has however my search skills are lacking today.
I have a First Direct offset mortgage at BoE rate +1.88%. The term is 25 years and I have 14 years left to pay it. The loan was for £151K and I'm a couple of months away from being able to bring it down to zero (have been stoozing and making overpayments due to lower outgoings during Covid). I read somewhere that mortgage lenders, possibly First Direct, have made cash 'buy-out' offers to those mortgage holders with a couple of quid outstanding in order to reduce the mortgage provider's loan book size and liability.
My question is, has anyone seen discussion of this possibility, and whether any figures have been mentioned? e.g. £200... £300... £500
I would like to leave enough on the mortgage to get the best offer, if that's available. My thoughts are that exposure aside, it will cost FD a fair amount of £ to keep the mortgage open for the next 14 years so making an offer might be in the interest of both parties.
After £151K you may think, 'why bother for a couple of hundred quid?' so here's where my head is... Take a look at https://willitmaketheboatgofaster.com/book/ but swap the word Boat for Mortgage.
I have a First Direct offset mortgage at BoE rate +1.88%. The term is 25 years and I have 14 years left to pay it. The loan was for £151K and I'm a couple of months away from being able to bring it down to zero (have been stoozing and making overpayments due to lower outgoings during Covid). I read somewhere that mortgage lenders, possibly First Direct, have made cash 'buy-out' offers to those mortgage holders with a couple of quid outstanding in order to reduce the mortgage provider's loan book size and liability.
My question is, has anyone seen discussion of this possibility, and whether any figures have been mentioned? e.g. £200... £300... £500
I would like to leave enough on the mortgage to get the best offer, if that's available. My thoughts are that exposure aside, it will cost FD a fair amount of £ to keep the mortgage open for the next 14 years so making an offer might be in the interest of both parties.
After £151K you may think, 'why bother for a couple of hundred quid?' so here's where my head is... Take a look at https://willitmaketheboatgofaster.com/book/ but swap the word Boat for Mortgage.
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