Moorcroft - partial settlement offered on buy to let mortgage debt

mcorky999

I have received an offer from Moorcroft to partially settle a buy to let mortgage debt at 30% with a lump sum after using a company to negotiate on my behalf (Bell and comp).  The mortgage was with The Mortgage Business ie TMB. It seems that Halifax took over TMB and passed the debt to Moorcroft. I have a current account and home mortgage with Halifax and am concerned they may start to offset funds from those accounts once I have made payment. Text of letter below. Please could an expert enlighten me as to what I should do? Thanks

"Further to your recent communication we write to confirm that upon receipt of your clients lump sum payment of £xxxxx in respect of your clients sole liability, the remaining balance of your clients account will be closed on our system. Neither e nor our client or any other third party will make further contact with your client to recover the unpaid balance

Our client confirms that there will be no further obligation for your client to pay over and above the sum of £xxxxon account xxxxxx which means that a balance outstanding will remain in the banks internal records. However should your client be due, now or in the future, any moneys from our client, in respet of other matters/accounts with it, our client specificlly reserves the right 9both contractually and statutory) to offset the amount due and pay the sum to the remaining balance on account xxxxxxx

One the paymnt is cleared we will inform our client of this lump sum payment in respect of your clients sole liability so that, if appropriate, they can update your clients Credit file with the various credit reference agencies and mark the account as partially satisfied. Any relevant entry on your clients credit file will be reflected for 6 years from the date of default"

Brie

I don't think they can do anything with the mortgage but obviously they might not consider you the best risk come renewal time.  Then again I would guess that most banks will consider you a high risk and peg any offers accordingly.

I would suggest moving your current account to another banking group.  Don't do it by the fast switch system but do it the old fashion way of opening an account and moving all of your DDs etc one at a time.  This is a standard suggestion for anyone who is having debt problems.  Offsetting rarely happens but best not to take a chance.