Monday, Jun 22, 2009
Oakwood Finds Dry Rot.
Mail: £25,000 to Take your Mortgage Away to a Rival Bank in bid to Balance Debt
"Tom Stockham was offered £7,550 to move to another lender" after GMAC sold on the debt to US lender Oakwood. Similar case studies show all is not well in the market, with more lenders resorting to desparate tactics.
Posted by alan @ 08:53 AM (529 views) Add Comment
3 Comments
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1. paul said...
Well one things for sure - 2007 now looks like an awfully long time ago.
If you stop and think about it, if you have an existing loanbook of moderate quality, lending more to people secured on assets falling in value can only decrease the quality of the loan book and raise the costs of servicing the loan.
I think it's therefore a no-brainer for lenders to contract lending. Get the popcorn, the shows only just started.
2. Fly By Night said...
I like this variation on 'Take your business elsewhere'. It's now, 'We'll pay you to take your business elsewhere'!
:)
3. jack c said...
I had a discussion with someone last week where the lender (Advantage homeloans) made an offer to the borrower to reduce the outstanding balance by £40K if they move to another lender - 2007/8 purchase @£280K with loan of £240K (both borrowers self employed)
Two problems give rise to this mortgage having to stay with Advantage (1) Loan to value no longer stacks up even with £40k goldon goodbye ! (2) Self employed earnings do not meet tighter income multiples
Essence of the tale - life at the coal face is very much different to the hype in the newspapers.